French Carmakers Are Feeling Better: Sarkozy Too Busy With Supermodel To Notice

PSA (Peugeot and Citroën) gained some sales momentum last year, as the company continued its expansion into the fast-growing markets of eastern Europe and South America. The news comes less than a week after Renault also reported a modest recovery in its sales for 2007. An interesting point noted in this FT article is that PSA sells a lot of unassembled vehicles to Iran, mostly Peugeots, where they are cobbled together under license. PSA's sales in eastern Europe, China and South America, the three markets that PSA has prioritized for sales growth, have been very good. In fact, combined sales outside western Europe rose 11 per cent in 2007. All of that good news isn't stopping PSA from whacking a few bodies, however.

PSA has repeatedly stated that it wishes to focus its energies elsewhere rather than relaunch into the United States. However, there have been rumors that Citroën may try to peddle its wares in Canada at some point in the future. For now, US and Canadian buyers will have to content themselves with the French assembled smart fortwo.