Peugeot Citroen Raises Outlook, Reveals New Models

BY EMMA VANDORE

VELIZY-VILLACOUBLAY, France (AP) — French carmaker PSA Peugeot Citroen on Thursday raised its outlook for 2009 and unveiled a host of new models, part of a three-year plan to boost earnings by euro3.3 billion ($4.95 billion) through cost cuts and higher sales.

CEO Philippe Varin revealed the new cars and plan at a glitzy presentation to investors, where mobile phones were confiscated to prevent photographs of the first public viewing of the cars.

The models included the new Citroen DS series of high-end small cars designed for monied urban customers, to be launched in 2010, the electric C-Zero and Peugeot iOn available next year, and a small Peugeot pickup truck aimed at the Brazilian market for trips to the beach or countryside.

The vehicles are designed to meet a changing market place with more environmentally conscious urban dwellers, older customers and Asian drivers.

By adapting its offering, Peugeot Citroen hopes to gain market share and close the profitability gap with its competitors.

About 55 percent of its euro3.3 billion plan should come from cost cuts, Varin said. This will include shrinking the French work force by an additional 10 percent — or 6,000 jobs — by 2012 through attrition. That's on top of 5,000 voluntary redundancies this year.