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Peugeot Citroen reports strong 2010 recovery

9 February 2011 Last updated at 07:26 GMT

A Peugeot executive shows off the new 508 The Peugeot 508 will launch in Europe

and China this year

French carmaker Peugeot Citroen has returned to a full-year profit after seeing

a strong recovery in 2010.

Sales rose by 15.8% to 56bn euros ($76.5bn; 47.6bn), "driven by successful new

models, market share gains and improved demand worldwide".

It reported a net profit of 1.13bn euros for last year, compared with a loss of

1.16bn euros in 2009.

Peugeot said that in 2011 it would continue with its second joint venture in

China and would enter India.

Chairman Philippe Varin said 2010's results were "significantly ahead" of

target.

When carmakers globally were suffering due to a drop in demand during the

financial crisis, Peugeot received a 3bn euro loan from the French government

in April 2009.

In September 2010, it repaid a third of that, and Mr Varin said the company's

"solid financial situation" would enable it to reimburse fully the remaining

2bn euros.

The carmaker said it expected the European market to remain stable in 2011, but

forecast growth of 4% in Latin America, 10% in China and 15% in Russia.