PSA upbeat on rebound; Nissan warns on losses

With much of the world grinding to a halt for weeks on end during the first half of 2020, car makers have been worried.

But even as the pandemic hit revenue at Peugeot-maker PSA, it still delivered profit in the first half of the year.

It said a strong sales rebound in June in its core European markets had extended into July.

The French carmaker, which suffered like rivals as dealerships closed and production halted, also said on Tuesday (July 28) it was sticking with its mid-term profit margin target.

PSA shares were up more than 4% in on the results.

The company's profitability has eclipsed that of some rivals including France's Renault in recent quarters, helped by a focus on pricier models like SUVs.

Under CEO Carlos Tavares, PSA has also kept a lid on production costs.

The group's net profit for the first half of 2020 also stayed in positive territory, at 595 million euros or 697 million dollars.

Tavares told analysts its merger with Italy's Fiat Chrysler - set to create the world's fourth largest carmaker under the name "Stellantis" - was still on course to close in the first quarter of 2021.

But it was a different tune over at troubled Japanese manufacturer Nissan.

It warned of a record $4.5 billion operating loss this year and its lowest sales in a decade.

The news could mean yet more challenges as Japan's number two carmaker attempts a turnaround.