Peugeot Citroen back in profit after overhaul, pays bonuses

PARIS – France’s largest car maker, PSA Peugeot Citroen, is paying bonuses to all workers in the country after it returned to profit last year on the back of higher sales and a multi-year restructuring plan.

The manufacturer said Wednesday it made 899 million euros ($989 million) last year, compared with a 706 million-euro loss in 2014.

The maker of the popular Peugeot 208 hatchback says it revenue from its automotive division rose 4 per cent to 37.5 billion euros last year, boosted by higher selling prices and strong growth in Europe. PSA Peugeot Citroen sold 2.87 million cars and light trucks last year, 1.2 per cent more than in 2014.

As a result of the strong figures, employees in France would get bonuses worth an average of 2,000 euros ($2,200) each, Chairman Carlos Tavares told RTL radio.

The once loss-making carmaker’s turnaround began two years ago with a 3 billion euro lifeline backed by Chinese investors and the French state. It has since focused on cutting costs and fattening margins.