Peugeot Citroen's Folz on Outlook for Sales, Profits: Comment

From: RSeidel908@aol.com
Date: Fri 29 Sep 2000 - 07:20:29 UTC

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    Paris, Sept. 29 <A HREF="aol://4344:30.bloombrg.389091.602536905">(Bloomberg)
    </A> -- The following is a comment by Jean-Martin Folz, chief executive of
    PSA Peugeot Citroen, Europe's second-biggest carmaker. Folz, speaking at the
    Paris auto show, discusses the outlook for sales and profits:

    ``There are no signs of a slowdown in the French market.'' Stripping out the
    effects of a change in the way the country's license plates are assigned,
    ``the French car market appears to still be growing strongly at the moment.

    ``Too many of our customers have waited too long for their cars this year.
    We've been rather a victim of our success, as we've seen the strongest growth
    in volume of all the major car manufacturers. That means we must stretch our
    production capacity to the limit.

    ``This year we'll certainly have production at 100 percent of capacity. That
    doesn't mean we won't have the ability to produce more. Many of our factories
    already work at over 100 percent at the moment, as 100 percent represents 16
    hours a day and 235 days a year.

    ``Sochaux and Rennes are at 60 percent. Though the introduction of new models
    means production at those two factories will increase sharply next year, we
    have the reserve capacity to deal with our future success.''

    ``We have over 10,000 orders this year for the Peugeot 607. I'm very
    confident that next year we'll sell 40,000 of the cars.

    ``We haven't lowered our prices in the U.K. and have no intention of doing



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