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Lorries lift for Peugeot, Volvo
23.07.08
European sales appear to be rescuing car and lorry makers from the US market slump, with Peugeot-Citroën of france and the trucking side of Volvo reporting strong results today.
The figures are in sharp contrast to north America, where an analysts warns general Motors and Ford are "on the verge of bankruptcy".
Volvo predicted that demand for trucks would grow by 10% in Europe. Peugeot, meanwhile, is seeing strong growth in sales of its smaller cars.
Volvo's second-quarter profit rose 28% to 5.1 billion kronor (£429.4 million) while PSA Peugeot Citroën, Europe's second-biggest carmaker, said first-half profit rose 49% to €733 million (£581.5 million). GM and Ford truck sales have collapsed, and the firms are saddled with unsold SUVs and pick-up trucks. The two biggest US carmakers have about a 46% chance of collapse within five years, according to Edward Altman, a finance professor at New York University's Stern School of Business.
