PSA Peugeot-Citroen has cut its full-year targets and announced "massive" production cuts after poor sales brought on by the economic crisis.
The French car maker said that sales in the previous three months fell to 13.3 billion euro from 14.02 billion euro as the financial slow down hit auto sales in Europe and slowed growth elsewhere. Figures show its third-quarter revenue this year had been slashed by 5.2%.
Peugeot-Citroen has warned it is expecting a 17% drop in the European market in the fourth quarter, and now predicts its global sales volumes to fall 3.5% from 2007 figures. The manufacturer had previously been expecting sales volumes to grow 5% this year.
Peugeot-Citroen is Europe's second-largest car manufacturer by sales but has been forced to reduce its target for operating margin - a measure of earnings from ongoing operations - to 1.3% for 2008 from 3.5%.
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