announces its best UK profits for eight years, following a record sales performance in
The company made £52.9 million pre-tax profit (£36.5 million after tax) on a turnover
of £2.39 billion. This was the highest profit since 1990, despite the heavy costs of the
UK manufacturing and commercial launch of the new Peugeot 206 range, and despite increased
spending due to the highly competitive market for new and used vehicles.
The profits will trigger a £1.2 million bonus payment to be shared amongst the
companys UK employees under the companys profit-related pay scheme a
lump sum of about £240 tax-free for the average production worker.
Managing Director, Mr Richard Parham, commented:
"This was a tremendous all-round industrial and commercial performance by our UK
workforce, particularly since we have deliberately absorbed all the high launch costs
related to the introduction of the new 206 range at our Ryton plant in our 1998 financial
Peugeot sold 181,564 cars in the UK (up 8.4%) and raised market share to a record
8.08%. the 106, 306 and 406 ranges all achieved their best ever sales, while the new 206
range achieved an unprecedented sales launch, attracting more than 10,000 sales in less
than two months.
The 206 launch was also the most successful in Peugeots UK manufacturing history,
with the Ryton factory achieving, in record time, the required levels of production and
Since launch, runaway demand for the 206 more than 300,000 have been sold across
Europe has forced a radical increase in production in the UK and France. A third
shift, involving the creation of 900 new jobs, will start in the next two weeks at
Peugeots Ryton plant and extra output is planned at Peugeots Mullhouse plant
By mid-April, total 206 production will be 12,000 cars a week, including 3,400 in
Coventry. And by the end of this year, the giant Peugeot plant at Poissy, near Paris, will
also start building the 206 range, adding a further 1,000 cars to the weekly production
Added Mr Parham:
"As well as achieving an outstanding sales launch for the new 206, performance of
the Peugeot 106 was exceptional for a seven-year-old model, while 306 became the first
Peugeot ever to achieve over 70,000 sales in one year. We also achieved record light
commercial vehicle sales with strong performances from the Peugeot Partner and Expert
He also commented:
"While there were many successes in 1998, we must continue to strive for increased
profits to enable us to compete effectively in the future."