PARIS -- PSA/Peugeot-Citroen SA predicted that Europe's auto market will continue to decline in the wake of the sovereign-debt crisis after its car sales in the region slipped in 2011.
PSA sold 6.1 percent fewer vehicles in Europe last year and its market share fell 0.9 points to 13.3 percent as the 207 subcompact "came under stiff competition," the carmaker said on Thursday.
PSA's worldwide sales declined 1.5 percent to 3.5 million vehicles even as the auto market expanded by 3 percent, it said.
The results "reminds us what can, and most likely will, go wrong in 2012," Erich Hauser, a London-based analyst at Credit Suisse, said in a note.
Expansion in emerging markets could not offset a decline in Europe. PSA's sales grew 10.6 percent in Latin America, 7.6 percent in China and 34.8 percent in Russia. The proportion of PSA's car sales outside Europe expanded to 42 percent from 39 percent in 2010 as the automaker chases growth in emerging markets and aims to give its brands a more global presence.
The automaker this year intends to introduce four new models including the 208, a 207 successor, and six restyled vehicles.