Peugeot Citroën Automobiles Spain, the company through which Stellantis operates the vehicle factories in Vigo and Madrid, managed to return to profits last year after leaving behind the capital increases in its Argentine subsidiary in 2018 and 2019 for a total amount of 381 , 7 million euros. As recorded in the income statements deposited in the commercial register, the company earned 8.9 million euros, compared to losses of 156.2 million a year earlier. The company’s turnover reached 6,444.2 million euros, 22% more.
Despite the improvement, the auditors underline in the management report that the firm has a negative working capital of 263 million euros, which shows an inability to pay short-term debts with its current assets. In any case, it is considered that the results of the past financial year made it possible to restore the equity balance and, in addition, the report mentions the existence of a letter from Groupe PSA (majority shareholder of the Spanish company until its merger with FCA to create Stellantis) that guaranteed the resources required by society to maintain its viability.
The Argentine subsidiary accumulates an impairment of 781.4 million euros and last year, which continued in losses, a provision was made for an amount of 31.4 million euros. This impact is explained by the negative results of the South American company, the hyperinflation existing in Argentina and the depreciation of the peso against the euro.
The improvement in the main business data of the company in the middle of the pandemic year is explained because Peugeot Citroën Automobiles Spain is not in charge of the final marketing of the vehicles it assembles in its two factories. Almost all of its production (99.6%) is absorbed by PSA, which is also in charge of negotiating raw material purchase contracts. This fact is what prevented sales from being affected by the closure that affected production closures in some months of 2019 due to the spread of the coronavirus. But the impact of this stoppage is noticeable in the company’s operating income, cut 33% in one year, to 62 million euros. The annual accounts do not refer to a possible forecast for the year 2021 due to the uncertainty generated by the covid, nor do they mention the impact of the semiconductor shortage, which is affecting the entire industry.
In total, the Spanish subsidiary manufactured 526,568 vehicles in 2019, 14.5% more. The Vigo center produced 498,639 units, an increase of 22.7%, mainly due to the pull of the new Peugeot 2008, a model of which 195,453 units were assembled, eight times more than a year earlier. The Villaverde de Madrid plant, meanwhile, produced 27,929 vehicles, a 47% drop in production. The company is not in charge of the Figueruelas (Zaragoza) plant that PSA absorbed when it acquired the Opel / Vauxhall group.
The company’s accounts testify that the Vigo plant had to postpone the celebration of the 14 millionth vehicle due to the pandemic. In September, the center set a historical monthly production record, ending 59,900 units assembled. It was the month before the center achieved another milestone: launching the fourth shift of activity on one of its lines, which meant adding 600 more people to the workforce.
In the provisions chapter, Peugeot Citroën Automobiles Spain recorded 345 million euros. Most of it, 318.9 million, is explained by tax inspection actions for the Company tax between 2011 and 2018. In addition, 27 million have been provisioned for an inspection related to Social Security aid in a regulatory file of employment of 2020. The company assures that it will appeal the administrative act to the courts.