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France's top carmakers post record 1999 sales

PARIS: Top French carmakers PSA Peugeot Citroen and Renault SA said on Thursday that revenues revved up to new highs in 1999, driven by strong demand for their key models.

PSA said sales rose 12 percent in 1999, reaching a new peak of 37.8 billion euros. French counterpart and competitor Renault said revenues edged up by slightly more than one percent to a record 37.6 billion euros last year.

On a comparable basis, Peugeot and Renault sales rose 10.6 percent and 5.2 percent, respectively.

Peugeot attributed the gains to sales of its Peugeot 206, Citroen Berlingo and Peugeot Partner models, as well as its high-pressure direct injection (hdi) diesel engines which were made available in almost all Peugeot and Citroen cars last year.

Renault pointed to the success of several key models which it said allowed the company to strengthen its position as the number one brand in Western Europe in passenger cars and light commercial vehicles.

"The Cleo, which was the top-selling small car on the European market, was the brand's principal growth engine, while the Megane and the Kangoo continued to score strong gains internationally," Renault said.

Renault revenues generated outside of France rose to 63.5 percent of total sales, up from 61.4 percent in 1998, 60.6 percent in 1997 and 53.9 percent in 1996.

Renault said it reinforced its first place positions in Argentina and Turkey, which are its traditionally strong markets outside Europe.

The company said other markets moved ahead at a steady pace, with a particularly sharp gain in Brazil.

Revenues at Renault's automobile division rose 4.2 percent on a comparable basis to 29.7 billion euros in 1999.

Commercial vehicles sales climbed 10 percent on a comparable basis to 6.5 billion euros, while revenues of the finance division -- mainly interest income from sales financing activities -- were up 3.3 percent to 1.4 billion euros.

At PSA, automobile unit sales were up 11.5 percent to 32.6 billion euros, while financing activities shot up by 56.3 percent to 1.06 billion euros.

PSA registered its strongest growth in its home market, where unit sales were up 15.2 percent on the year. Overall European sales were up 12.2 percent, while other countries saw a more modest one percent rise.

Earlier this month, both of France's top carmakers announced record unit sales for the year, which Renault selling 2.29 million vehicles in 1999 and PSA 2.52 million.-Reuters