Peugeot: Predicts European Market

MILAN, Dec 14, 2002; Reuters reported that French carmaker PSA Peugeot Citroen expects a stable European car market next year and is increasing its presence in the tough Italian and German arenas, its chairman said in remarks published on Saturday.

"After a small fall in the European market of four percent this year, I see a stable market next year and so one that is strong enough. I am not pessimistic," Chairman Jean-Martin Folz told Il Sole 24 Ore in an interview.

The Italian market, together with Germany, is a difficult market, he said.

"However, we are growing and are getting close to 10 percent of the market."

Europe's second-largest car producer is also looking to expand in Eastern Europe as its plants are operating at close to capacity, Folz said.

"This is why we are looking at a new investment in Eastern Europe which should start production in 2006. It is not delocalisation but it is necessary to bring production as close as possible to the new markets."

Peugeot expects to sell 3.25 million cars this year, up from 3.1 million last year. The group, which has around 15.5 percent of the European market, expects to sell 4 million vehicles in 2006.