Paris - Struggling French carmaker PSA Peugeot Citroen said on Wednesday it had suffered a net loss of €819m ($989m) in the first half, against a net profit of €806m in the first half of 2011.
The company, which has already announced 8,000 job cuts in France, said it will be implementing a €1.5bn cost reduction plan by 2015.
Peugeot, France's biggest carmaker and the second-largest in Europe, had already indicated it had suffered a loss in the first half but the figure was worse than analysts' expectations.
In a statement, Peugeot said its revenues were down 5.1% in the first half to €29.6bn while its recurring operating income was at breakeven at €4m, against €1.16bn in the first half of 2011.
Its auto division suffered an operational net loss of €662m.
The cost cutting plan, dubbed "Rebound 2015" in the statement, will include €600m in savings from reorganising French production, which includes the previously announced job cuts.
Another €550m will be saved by reducing capital expenditures and €350m will be from cost savings expected from a tie-up with US giant General Motors announced earlier this year.
"The group is facing difficult times," Peugeot chief Philippe Varin said in the statement.
"The depth and persistence of the crisis impacting our business in Europe requires the launch of the reorganisation of our French production base and a reduction in our structural costs," he said.
"Restoring the group's competitiveness will secure its future," he said.
* Follow
Fin24 on Facebook,
Twitter and Google+.