PSA Group turned its recently acquired Opel-Vauxhall business sharply back into the black while achieving record first-half profitability at its French car brands. PSA is benefiting from strong sales of its Peugeot 3008 and 5008 SUVs enhanced by years of cost savings under CEO Carlos Tavares, who pulled the group from near-bankruptcy in 2014.
Tavares is now applying the same medicine at Opel, which PSA acquired from General Motors barely a year ago and last turned a full-year profit in 1999.
PSA’s first-half net income to June 30 rose 18% to 1.481 billion euros (USD1.73 billion), as revenue jumped 40% to 38.6 billion, the company said in a statement this week.
The profitability of French brands Peugeot, Citroen and DS topped 8.5%, overshooting a 6% goal for 2021. Overall recurring group operating profit rose by almost half to 3.02 billion euros, PSA said, for a 7.8% margin.