Peugeot reports deeper losses as shares slide

Peugeot has reported it is going to make deeper cuts after the carmaker posted a loss of €819 million (£638 million) in the first half of 2012.

The company has stated sales in the six months from January to the end of June fell by 5.1 per cent.

This news has sent the automotive giant's shares further down on the Paris Stock Exchange and at 12:15 BST, the price was nearly 0.6 per cent lower at €6.20.

Peugeot - which made a profit of €860 million in the first half of 2011 - said it would not be able to break even until 2014 thanks to its €1.5 billion in cost saving measures.

The French firm is cutting 8,000 jobs and closing one of its two Paris factories in order to reduce its deficit.

Peugeot production facilities are operating at 76 per cent of capacity, as the eurozone financial crisis badly affects all 17 of the single currency bloc members.