Full-year results for France’s biggest carmaker show a net loss of €5bn, compared with a €588m profit a year earlier.

Group revenues were down 5.2% to €55.4bn. 

The carmaker largely attributed the loss to a write-down of the value of its European automotive and financial assets by €4.1bn.

PSA said it had already laid the foundations for its recovery last year, including a restructure of its manufacturing restructuring plan that will see huge job cuts and the closure of a plant in France, and its Alliance with GM.

The European Commission has given the carmaker temporary approval for a €1.2bn guarantee covering its market issues. The guarantee will cover new bond issues by Banque PSA Finance and will therefore extend to securities issued by the bank within a period of six months from the date of the decision. This is dependent on the submission of a restructuring plan for the entire group within six months.

Commenting on the results, Philippe Varin, Chairman of the PSA Peugeot Citroën Managing Board, said: ‘The Group's 2012 results reflect the deteriorated environment in the automotive sector in Europe. In this context we have taken the difficult but necessary measures to reorganise our manufacturing base in France. The results of the cost reduction and asset disposal plans have exceeded our targets, highlighting the exceptional commitment of our employees.’

PSA also highlighted its hopes for its partnership with GM, with Mr Varin saying: ‘Our strategic Alliance with GM has entered into execution phase.
Today, the foundations for our rebound have been laid. We are going to build on the strong identity of our brands and differentiate their customer territories. We are going to focus our investments, actively restore our profitability in Europe and reap the benefits from our investments in growing markets.’

Figures released by the European Automobile Manufacturers’ Association (ACEA) show that European new car sales fell 8.2% in 2012, leaving the market at its lowest level since 1995.

PSA said its expects to see a contraction in the European market of around 3% to 5% in 2013, and growth of approximately 8% in China, 2% in Latin America and 2% in Russia.