PARIS (AP) -- PSA Peugeot Citroen says it lost €5 billion ($6.7 billion) in 2012 after Europe's cratering car maker forced France's largest automaker to take a €3 billion financial charge in its annual accounts.
The Paris-based car maker says its annual loss, which compared to a €588 million profit in 2011, "reflects the deteriorated environment in the automotive sector in Europe." Revenue from new vechicle sales slumped 12.4 percent last year to €27.8 billion. The company said falling demand and rising cost of steel and other materials led to an operating loss of €1.5 billion for its car making operations last year.
Europe's car market contracted 8.2 percent last year to the lowest level since 1995, according to Brussels-based car industry group ACEA. The French car market slumped 13.9 percent in 2012.