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Sales boost auto shares
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December 15, 1999: 7:19 a.m. ET
Peugeot hits record as VW extends European sales lead; Ford, Fiat slip
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LONDON (CNNfn) - Increased November auto sales in Europe pushed shares in French market leader PSA Peugeot-Citroen to a record high in Paris Wednesday. The monthly report showed U.S. and Japanese manufacturers lost market share.
PSA, which makes Peugeot and Citroen cars, saw its sales climb 12.4 percent in the 12 months to the end of November, according to data from the European Automobile Manufacturers Association (ACEA).
European auto sales have surged this year as the booming French economy meant improved conditions for domestic manufacturers, and amid rising demand in Greece, Ireland and Sweden. Gains have confounded earlier predictions that sales would fall in 1999 after strong growth last year.
Peugeot (PUG) shares soared more than 7 percent to an all-time peak of 218.80 euros before slipping back to 217.20 euros. Arch rival Renault (PRNO) gained 3.3 percent to 46.50 euros despite a slight dip in November sales.
Peugeot shares had already rallied in recent weeks amid speculation the company will agree closer ties with DaimlerChrysler, which is looking to boost its share of the market for small vehicles.
The ACEA said new western European auto registrations in November were up 0.3 percent from a year earlier, taking the increase in sales to 5.1 percent since the start of the year.
PSA’s European market share this year has grown to 12.1 percent in the year to end November from 11.4 percent a year earlier, ranking it second behind Volkswagen and taking it ahead of Ford (F) and General Motors (GM).
Volkswagen (FVOW) shares rose 2.3 percent to 49.21 euros Wednesday. The report showed it lifted its market share for the year’s first 11 months to 18.8 percent from 17.9 percent a year earlier. DaimlerChrysler (FDCX) climbed to 5.6 percent from 5 percent, and saw its shares jump 2.6 percent in Frankfurt.
European manufacturers’ gains came at the expense of Ford, whose market share this year has slipped to 11.2 percent from 12 percent, though GM managed a modest gain to 11.5 percent despite a slip in November. The share of Japanese auto makers fell to 11.5 percent from 11.9 percent.
Fiat’s market share slid from 11 percent to 9.7 percent, though its stock gained 1.3 percent amid reports that it may bid for South Korea’s Daewoo Motors, in which GM has already expr4essed interest.. 
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