December 12, 2013 / 7:33 AM / in 4 years

Peugeot hit by 1.1 billion euro writedown, trims GM goals

PARIS (Reuters) - PSA Peugeot Citroen (PEUP.PA) announced a 1.1 billion euro ($1.52 billion) writedown on Thursday, reflecting a weaker sales outlook and currency headwinds in Russia and Latin America.

The Peugeot logo is seen on a vehicle at an auto scrap yard in Vendenheim near Strasbourg, November 27, 2013. REUTERS/Vincent Kessler

Peugeot will take the asset impairment on its 2013 earnings, widening an automotive operating loss that came to 510 million euros in the first half, the Paris-based company said in a statement.

The company also cut its 2018 savings goal from joint programs with General Motors (GM.N) by 40 percent to $600 million for each partner, after the carmakers dropped plans to pool the development and production of small cars.

But Peugeot reiterated its full-year goal of halving the negative 3 billion euro operating cash flow recorded in 2012.

Reporting by Laurence Frost, editing by Astrid Wendlandt

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