Peugeot Citroën, the French carmaker, yesterday issued its third profit warning in less than a year after posting a €540m (£370m) drop in 2005 earnings to €1.94bn and a fall in its margin to 3.4% from 4.4% in 2004.
Jean-Martin Folz, the chief executive, said the figures were "mediocre" and added: "We have to improve them." He admitted that the 2.8% margin in the second half of 2005 would be repeated in the first half of 2006.
The group, which targets a 4% margin, hopes to raise this to 6% with a series of new models it claims will be the most modern on the market.
