French car maker PSA Peugeot Citroen has reported a widening of losses for 2009. It said cost cuts would help it weather tough trading conditions which were likely to persist through 2010.
Chief Executive Philippe Varin said the group expected the European car market to decline 9% this year. Peugeot gave no detailed financial forecast for the full year this year.
The industry faces the prospect of falling sales as most of the scrappage schemes European governments brought in early last year to prop up plummeting markets come to an end.
PSA posted a recurring operating loss of €689m for 2009, though its fortunes turned around in the second half when it reported a recurring operating profit of €137m.
Since Varin took over the reins at PSA in June last year, he has emphasised the group's need to become more global. It is currently in discussions about strengthening its partnership with Mitsubishi Motor.
PSA's full-year sales were down 10.9% at €48.4 billion, though they were slightly better in the second half of the year than in the first. PSA's full-year net loss widened to €1.16 billion from a net loss of €363m in 2008.
