PSA Peugeot Citroen is anticipating a potential slowdown in the European automobile market in 2008 due to the reversal of Spanish and British markets, said Tuesday Chief Executive Christian Streiff.

A spokesman for the automaker french however said from Paris that PSA had not changed its view on the evolution of the European automobile market since the publication of its annual results in February.

PSA now provides a European market stable or even slightly down, compared with a forecast of stability or slight increase six months ago, said Christian Streiff.

This statement caused a serious decline in the action which closed down 5.88% to 49.31 euros in Paris stock exchange while the Renault finished down 5.10% to 66.76 euros .

But according to the spokesman, these words do not constitute a new vision of things and were already taken into account in February.

The CEO of PSA also stated that the situation of the American economy should not lead to major setback in Europe.

Christian Streiff also said that the group was working on new models for entry level for specific emerging markets while making it clear that they are not of low-cost vehicles like Logan Renault or "Nano "Indian manufacturer Tata Motor.

Christian Streiff also indicated that PSA was working on the launch of five cars premium, in a tone just below the high-end cars (C6), the first outings planned by the end of 2009.

He also stated that the group would make a decision on a partnership for its new factory in Russia and the installation of a third plant in China by the end of the 1st semester 2008.