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(JEAN-PAUL PELISSIER/REUTERS)

BREAKINGVIEWS

A massive writedown, but Peugeot still running on fumes

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

In a French corporate version of glasnost, PSA Peugeot Citroën is cleaning up its balance sheet and will write off assets to the tune of €4-billion ($5.3-billion) – 28 per cent of its current asset base, an amount equivalent to twice its current market capitalization. Now it can focus on the future: it’s bleak.