PSA Group, the maker of Peugeot and Citroen cars, surpassed French rival Renault in stock-market value for the first time in almost a decade after PSA unveiled record profitability Tuesday.
PSA’s market capitalization reached almost 21.5 billion euros ($25.1 billion) after the shares jumped 16 percent over the past two days to close Wednesday at their highest since 2011. Renault, which reports first-half earnings Friday, has a 21.3-billion-euro value.
PSA, which acquired the Opel and Vauxhall brands from General Motors less than a year ago, stunned financial analysts Tuesday after unveiling profits at the newly acquired division, following two decades of losses under GM. Still, challenges remain, including a sales plunge in China, a withdrawal from Iran and large one-off restructuring expenses to turn around Opel.
PSA sold 3.63 million vehicles last year, while Renault sold 3.76 million.
Renault is much larger than PSA because of its controlling stake in Nissan, which in turn controls Mitsubishi Motors. Together, the three automakers sold 10.61 million light vehicles last year.