PSA is benefiting from runaway sales of its Peugeot and SUVs enhanced by years of cost savings under Chief Executive Carlos Tavares, who pulled the group from near-bankruptcy in Its first-half net income to June 30 rose 18 percent to 1.
PSA shares rose as much as Cost-cutting at Opel, which had lost a billion dollars a year under GM ownership, helped the division record a half-billion euro profit for a 5 percent operating margin. Overall recurring group operating profit rose by almost half to 3.
The results soundly beat analyst expectations of 1. Opel's better-than-expected performance and return to profit could signal readiness for further consolidation moves.
In his call with reporters, CFO Chatillon stressed the company's 8. But it could also complicate talks with German unions, as PSA seeks to offload engineering departments at the carmaker's Ruesselsheim headquarters near Frankfurt. PSA, which is already cutting 3, Opel manufacturing jobs, enraged unions last month when it confirmed it was seeking a buyer for research and development activities that currently employ another 4, staff.
Talks are ongoing with "partners that could bring in work", he said, declining to identify potential buyers understood to include engineering consultant Altran.
