PARIS, Sept 25 (Reuters) - PSA Peugeot Citroen , encouraged by its strong performance in Europe in recent years, is due to unveil a bold new sales target on Thursday, breaking with its tradition of cautious forecasting.
Chairman Jean-Martin Folz will announce at the Paris motor show on Thursday that the French carmaker aims to sell four million cars in 2006, an increase of 23 percent from the 3.25 million expected for this year, according to a prepared speech obtained by Reuters.
Europe's second-biggest auto firm has caught a flair for design that has customers paying a premium for its stylish cars such as the Peugeot 307 or Citroen C3.
The company announced earlier this year that its profitability, measured in terms of the operating margin, would come in at the higher end of its expectations, partly thanks to cost cutting as it shifts assembly of different models onto different platforms.
Analysts have voiced caution looking further ahead, however, as a wave of product launches by local rival Renault SA recently stepped up a gear, making competition tougher in the Peugeot's lucrative domestic market.