France's biggest carmaker, PSA Peugeot-Citroen, said Wednesday that it lost euro343 million ($433 million) in 2008 and expects to keep losing money this year as it deals with an "unprecedented collapse" in auto sales amid the world financial crisis.

The loss compares to a net profit of euro885 million a year earlier. Sales fell 7.4 percent to euro54.4 billion.

Shares plummeted 9.2 percent to euro13.05 in Paris opening trade.

CEO Christian Streiff predicts auto sales would fall 20 percent in Western Europe this year, before leveling out in 2010.

"Faced with the prospect of a prolonged recession, our priorities are clear: we must concentrate all our efforts on reducing inventory and minimizing our cash consumption," he said in a statement.

He said he expects the first half of this year to be "particularly difficult."

The French government is seeking to help its ailing auto makers through low interest loans and incentives to trade in older vehicles for less polluting models.