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Groupe PSA 15.4% Rise in Sales Drives Revenue up 20.7%

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By Modupe Gbadeyanka

The 2017 financial year was a great one for automaker, Groupe PSA, which boasts of five leading car brands in the world; Peugeot, Citroën, DS, Opel and Vauxhall.

In its 2017 earnings, the group achieved historic results with 15.4 percent increase in its sales at 3.63 million vehicles sold in the period under review, while the revenue appreciated by 20.7 percent to €65.2 billion.

In 2017, group revenue amounted to €65,210 million compared to €54,030 million in 2016 up 20.7 percent. At constant 2015 exchange rates and perimeter, 2017 Group cumulated revenue was up 12.9 percent. PCD Automotive division revenue amounted to €40,735 million up by 9.9 percent compared to 2016.

This increase, according to the firm, was mainly driven by the product mix (+4.5 percent) and the volume and country mix (+4.9 percent) improvement linked to the worldwide success of the group’s new models that more than compensated the negative impact of exchange rates (-1.6 percent). OV Automotive division revenue amounted to €7,238 million in 2017.

Group recurring operating income amounted to €3,991 million, up 23.4 percent compared to 2016, while PCD Automotive recurring operating income grew by 33.3 percent compared to 2016 at €2,965 million.

This 7.3 percent record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to a positive product mix and further cost reductions.

In addition, OV Automotive recurring operating income amounted to a €179 million loss in 2017.

Furthermore, group recurring operating margin excluding OV stood at 7.1 percent versus 6% in 2016 and the group recurring operating margin with OV stood at 6.1 percent.

Consolidated net income reached €2,358 million, an increase of €209 million compared to 2016, while the net income, group share, reached €1,929 million compared to €1,730 million in 2016.

It was gathered that consolidated sales in the Middle East & Africa region up a sharp 61.4 percent year-on-year at 618,800 units, of which 26,800 for the OPEL brand, while the group’s overall market share in the region came in at 11.6 percent and has steadily risen since 2015, on target with the Push to Pass plan objective of selling 700,000 vehicles by 2021.

Groupe PSA has continued its product offensive in the region, where it has successfully launched the new CITROËN C3, the new PEUGEOT 3008 SUV, and the new PEUGEOT Pick Up, which marks the brand’s history-making return to its legitimate place in the segment.

OPEL is in the midst of a product offensive in the region having recently launched the new Insignia and Crossland X and with the launch of the new Grandland X slated for early 2018.

For the DS brand, 2017 marked the development of a dealer network across the region ahead of the market launch of the DS 7 CROSSBACK in the coming months.

The Group continued to expand its manufacturing base, breaking ground on the Kenitra plant in Morocco, starting up local production in Kenya and Ethiopia, and signing a memorandum of understanding to set up a new plant in Oran, Algeria.

Furthermore, 7.3 percent Peugeot Citroën DS (PCD) Automotive division recurring operating margin was at a record level, while 7.1% of the Group recurring operating margin, excluding OV and 6.1 percent including OV with a Group recurring operating income was at €3,991 million.

In the period, the company recorded 11.5 percent increase of Net result group share and €1.56 billion positive operational free cash flow.

Commenting on the results, Chairman of Groupe PSA, Mr Carlos Tavares, stated that, “Peugeot Citroën DS outstanding results, making significant progress for the 4th year in a row, are the proof of our ability to deliver a profitable and sustainable growth.

“Our agile, customer focused and socially responsible approach is making the difference. The acquisition of Opel Vauxhall is a great opportunity to boost value creation.”

A dividend of €0.53 per share will be submitted for approval at the next Shareholders’ Meeting, the company said.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Company Gets Ultimatum to Stop Indiscriminate Truck Parking on Aina Obembe Road Baruwa

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Aina Obembe Road traffic agbaje

By Dipo Olowookere

Residents and motorists plying the Aina Obembe Road in Baruwa, Ipaja, Lagos, may soon heave a sigh of relief as the excruciating traffic gridlock being experienced in the area both day and night may soon be a thing of the past.

This is because the chairman of Ayobo-Ipaja LCDA, Mr Lukmon Agbaje, has directed those involved in indiscriminate truck parking along the road to remove the heavy-duty vehicles within one week, threatening to invoke appropriate enforcement measures for noncompliance with this directive.

Speaking during a meeting on Wednesday with the management of SENA Company, which owns the affected trucks, as well as the leadership of Oluwadara CDA and other key stakeholders like the Lagos State Traffic Management Authority (LASTMA), at the council’s secretariat, Mr Agbaje frowned at the prolonged inconvenience suffered by the community, stressing that public roads must remain accessible and safe for all users.

He emphasised the need for a collaborative approach in resolving the issue without undermining legitimate business operations, noting that he’s focused on finding a lasting solution to the gridlock experienced between Oluwaga and Aina Obembe, where parked trucks have continued to obstruct traffic, disrupt business activities, and pose safety concerns for residents and motorists.

He tasked the firm and the CDA to jointly identify and implement alternative parking arrangements that would remove all trucks from the affected roads and restore the free flow of traffic.

He declared that, “The welfare of our people remains our highest priority. No individual or corporate organisation should obstruct public infrastructure or create avoidable hardship for residents. We must ensure that economic activities coexist with public safety, order, and convenience.”

The council chief reaffirmed his administration’s commitment to promoting orderly development, ensuring safe and accessible roads, improving traffic management, and creating an environment where businesses can thrive alongside the well-being of residents.

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FG Rolls Out Green Tax, Cuts Vehicle Import Levies

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Green Tax Surcharge

By Adedapo Adesanya

The federal government has cut import levies on new and used vehicles by as much as 10 per cent in a move aimed at reducing the cost of vehicle importation, even as it commenced the implementation of a new Green Tax surcharge.

According to an update issued by the Nigeria Customs Service (NCS) on Wednesday, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been slashed from 15 per cent to five per cent under the 2026 Fiscal Policy Measures, which took effect on July 1, 2026.

The customs said the policy is designed to ease the cost of vehicle imports while advancing the government’s environmental sustainability objectives through the newly introduced Green Tax.

The implementation also reduces the overall import duty on fully built passenger vehicles from 70 per cent to 40 per cent.

As part of the Green Tax framework, a new environmental surcharge of between two per cent and four per cent will apply to petrol-powered vehicles with engine capacities exceeding 2,000cc. However, mass transit buses, electric vehicles, and passenger cars with engines below 2,000cc are exempt from the surcharge.

Beyond the automobile sector, the fiscal measures also lower import duties on several essential goods. The duty on imported rice has been reduced from 70 per cent to 47.5 per cent, while crude palm oil now attracts a 28.75 per cent duty.

In addition, import duties on agricultural and manufacturing machinery have been completely removed to support local production, while Waste PET has been added to the export prohibition list to encourage domestic recycling.

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Ayobo-Ipaja LCDA Plans Data Capture of Commercial Motorcycle, Tricycle Riders

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lukmon agbaje ayobo ipaja data capture

By Dipo Olowookere

Plans are underway to carry out a comprehensive data capture and registration exercise of all commercial motorcycle and tricycle operators within Ayobo-Ipaja LCDA.

This move, according to the council chairman, Mr Lukmon Agbaje, is part of proactive measures to strengthen the security of lives and property across the Local Council Development Area (LCDA). The exercise, he said, would be executed in partnership with security agencies and transport unions.

On Tuesday, the council chief convened a high-level security meeting with leaders of commercial transport unions and key security stakeholders operating within the area.

Mr Agbaje expressed concern over the increasing influx of commercial motorcycle (Okada) and tricycle (Keke) operators into the LCDA without proper documentation or profiling.

According to him, the absence of reliable records poses significant security challenges and could provide opportunities for criminal elements to infiltrate communities under the guise of commercial transportation.

He stressed that security is best achieved through preventive measures, noting that effective profiling and documentation remain essential tools in safeguarding residents and protecting the council from emerging security threats.

Mr Agbaje disclosed that under the new security framework, all Okada and Keke parks and operational locations across the LCDA would be officially documented, adding that every duly verified operator would receive an official identification jacket bearing a unique coded number to facilitate easy identification and monitoring.

He also said a mandatory guarantor system will be introduced to strengthen accountability, ensuring that every registered rider has a verifiable guarantor who can be contacted whenever necessary.

The chairman noted that these measures are designed not only to improve security coordination but also to protect law-abiding commercial operators and discourage criminal activities within the council.

Leaders of the various transport unions welcomed the initiative, noting that proper documentation will distinguish genuine operators from criminal elements, enhance public confidence, and promote a safer working environment for commercial transporters.

Also, the Divisional Police Officers (DPOs) of Ayobo and Ipaja Commands commended the initiative, describing it as a timely and commendable step towards strengthening community policing. They reaffirmed the Nigeria Police Force’s commitment to working closely with the council to ensure full compliance and sustain peace and public order.

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