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Peugeot 206 Scores in UK

14 May 2000

Despite depressed British car market Peugeot UK doubles its profits on the 
back of the 206

    London -  Demand for the Peugeot 206 has made it the French car makers 
fastest selling model, according to a report issued by its British 
subsidiary.  A profit of about $156 million was earned in 1999 (compared to 
$75 million the previous year).  Peugeot's Ryton plant in Coventry produced 
163,000 206's in '99, versus 72,000 in 1998.

    By contrast, a recent survey conducted by the London Financial Times stated 
that most UK car manufacturers experienced losses or declining profits 
1999.  Problems were the result of the strong pound and a fall in car sales 
triggered by accusations of over-charging.

    However, Peugeot executives in France expressed just restrained enthusiasm 
at the success of the 206 in the UK due to  worries over a Ryton's desire 
to make the new 207 model, which is due for launch around 2004.  Plant 
upgrades would require and estimated investment of $160 million thereby 
nullifying much of the gains.


MJR