Peugeot to replace chief executive for Dongfeng deal -sources

November 23
1:03 PM 2013

PSA Peugeot Citroen is reportedly looking for a new Chief Executive Officer (CEO) to replace Philippe Varin. The news came after Chinese partner Dongfeng said a management change should accompany a joint venture under negotiation, according to sources familiar with the matter. The unnamed sources were cited in a report published by Reuters.

The sources said Varin himself is taking charge of the interviewing process for his successor. Dongfeng emphasized that it wants a leader who has the right experience and ability to lead a global carmaking tie-up, the report said.

Peugeot and Dongfeng are discussing a plan to build on their Chinese joint venture. The sources said the two companies are also discussing a multi-billion-euro share issue. This issue would allow Dongfeng and the French government to acquire stakes in Peugeot, said the report.

Peugeot is one of the car manufacturers that suffered during the six-year market collapse in Europe. The company had been cutting jobs in France in an effort to stop its losses. However, the company will have a hard time making it on its own, Reuters said. Varin acknowledge that the carmaker will need a fresh injection of capital from new partners to support future investments and production, Reuters reported.

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