French carmaker PSA sales posts gain despite Iran withdrawal

PARIS (Reuters) – France's PSA Group ( PEUP.PA ) said that it was a major market for the maker of Peugeot and Citroen cars.

Deliveries rose to 2.18 million vehicles, up 38 percent thanks to PSA's Opel-Vauxhall from General Motors ( GM.N ) last year. Excluding the newly acquired brands, sales rose 1.9 percent globally and 8.4 percent in Europe.

But Middle East sales by the French brands fell 26 percent, the group said, reflecting the deconsolidation of Iran from May 1 under the threat of U.S. sanctions. Iran had accounted for more than 12 percent of group sales last year.

Under a succession of CEOs, PSA has sought to expand Europe beyond. But the withdrawal and the openness of the world, which claimed 77 percent overall deliveries, up from 66 percent a year earlier.

"PSA Europe chief Maxime Picat said on Thursday," We're not global enough, but at the same time we're less exposed to the tariff.

In the current climate of mounting trade tensions, he told reporters on the subject of high domestic sales concentration was "almost becoming a strength".

PSA sees no reason to change its full-year outlook for a "stable" European market, Picat added. The group is due to publish first-half financial results on July 24.