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Reuters Summit-UPDATE 1-Peugeot sees strong year-end in Europe

Published 11/02/2009, 06:42 AM
Updated 11/02/2009, 06:45 AM

* Peugeot sees Europe at some 14.5 million units in 2010

* Says has big plans for China

(Adds more details from interview, background)

By Michel Rose and Helen Massy-Beresford

PARIS, Nov 2 (Reuters) - French carmaker Peugeot sees a strong end to 2009 as drivers flock to take advantage of scrapping schemes while they still can, deputy managing director Nicolas Wertans said at the Reuters Autos Summit on Monday.

Wertans said he expected the overall European market to reach around 14.5 million units next year, compared with 15.5-16.0 million in 2009, as the early signs of economic recovery would offset the "payback period" carmakers are expecting as government incentives to trade in old cars fade or stop altogether.

The scrapping scheme in Germany, Europe's largest car market, has already finished, and while Peugeot does not see a "boom" there in the last few months of the year, France should show strong sales, he said.

French car sales rose 20.1 percent in October, carmakers association CCFA said on Monday.

"There will be probably a payback period next year, especially in some big markets like Germany, but it will be slightly less strong than what we would have feared a few months ago, because in the meantime the economy is slightly recovering," Wertans said at the summit, which is taking place from Nov. 2-5 at Reuters' offices in Paris and Detroit.

CHINESE AMBITION

Peugeot has big plans for China, which is "saving the automotive world this year," Wertans said.

Peugeot is the larger of the two brands which makes up France's biggest carmaker PSA Peugeot Citroen, the number two in Europe behind Volkswagen AG.

The group as a whole is aiming for Chinese market share of around 10 percent versus a current level of roughly 3.5 percent for the two brands.

"We don't have much time, because all car manufacturers are planning the same," he said.

Peugeot will next year unveil a mid-sized sedan aimed at the Chinese market, Wertans said. "We're too small in China," Wertans added.

PSA Peugeot Citroen said last month that third quarter sales fell 7.7 percent to 11.782 billion euros, a smaller decline than in previous quarters as it boosted market share in Europe, where government incentive schemes boosted car sales.

(Reporting by Michel Rose and Helen Massy-Beresford, editing by Marcel Michelson)

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