PSA Peugeot-Citroen has warned governments that halting scrappage scheme could prove disastrous.
The group warned that it could lose �2bn (�1.7bn) this year and have to scale back production in the fourth quarter of this year, if Europe-wide scrappage schemes start to be curtailed.
France was the first of the 12 European countries to launch the scrappage scheme as part of a �6bn (�5.1bn) car industry bailout and will decide in January whether to continue. Many expect the government to reduce the �1,000 (�851) trade-in incentive in stages.
The German government, which has the most generous scheme, says it is 'weighing its options'. Peugeot issued the warning at the same time as announcing a convertible bond issue of up to �575m (�489m).
PSA Peugeot Citroen recorded a �343m (�292m) net loss in 2008, said the capital raised from the bond issue would go towards �general financing needs�, development projects and the extension of the maturity of its existing debt.
Peugeot received a �3bn (�2.6bn) long-term loan from the French government in March and a �400m (�340m) four-year loan from the European Investment Bank in April.
No comments:
Post a Comment