French car giant PSA Peugeot Citroen today warned that it faced an operating loss of between €1 billion and €2 billion in 2009 and said it was raising €500m in fresh cash.
PSA said it expected the loss 'given the current situation in the market and uncertainties and prudent management of the finances.'
The car group had warned in April that it expected a loss this year but had not provided a figure. For 2008, the company sustained a net loss of €343m.
At the same time, the company said it now expected 2009 sales to be down 12%, less than the 20% fall estimated earlier, but would likely have to cut back output in the fourth quarter in anticipation that the government would end its trade-in support scheme for new cars in 2010.
