Ambitious Peugeot Citroen plan to double sales (2)

The French company is struggling in its home market Europe, reporting declining demand amid the euro crisis.

Global sales of the second-largest automaker in Europe last year totaled 2.82 million vehicles, an 8.8 percent decrease from 2011, mainly dragged down by sluggish sales in Europe, especially in southern Europe where the carmaker has a particularly large presence.

China proved to be a bright spot as sales increased 9.2 percent last year to 442,000 units, some 216,000 Peugeots and 226,000 Citroens. But the performance still lagged well behind rivals from Germany, the US, Japan and South Korea.

The newly launched Dongfeng Peugeot 3008 SUV is expected to help drive sales by grabbing a share of the fastest-growing segment of the Chinese market.

General Motors launched its locally made Buick Encore SUV in China three months ago to attract more young buyers. Ford and Skoda are also preparing to roll out localized products to join the SUV race.

The 3008 is available with 2.0-liter natural-aspirated or 1.6-liter turbo powered engines. The turbo is the latest engine co-developed by PSA and BMW.