Louis Gallois appointed to PSA board

Article by Christian Andrei, on December 20, 2012

Louis Gallois was appointed by PSA/Peugeot-Citroen as France's board representative at the carmaker. This comes after the government acted to help the automaker’s bank unit. Gallois, who used be the head of planemaker Airbus's owner, will serve on PSA's supervisory board after ratification at the annual shareholders' meeting on April 24.

Gallois, who is now 68, led Airbus parent European Aeronautic, Defence & Space Co. for nearly six years until May 2012. Last month, Gallois published a report over France's business competitiveness.

President Francois Hollande had commissioned the study. As part of an agreement on Oct. 24, the French state and PSA's labor unions would each get board representation. It also called for the government to guarantee up to 7 billion euros ($9.2 billion) in new bonds sold by the carmaker's Banque PSA Finance division.

Moody's Investors Service lists the debt at Banque PSA as having the lowest investment grade. It said further on Nov. 14 that it is considering a plan to reduce the rating due to the bank's link to the car-manufacturing parent firm. On Oct. 10, PSA's debt was lowered to three levels below junk at Moody's. On Dec. 15, PSA said that it is near to finalizing a deal with a pool of banks to refinance debt at Banque PSA.

Carole Dupont-Pietri, head of investor relations, said that negotiations with lenders are "on track" and that there should already be an agreement by Christmas. PSA is working to cut 17%, or 11,200 workers, from its French automotive workforce over the next two years. PSA is shutting down a plant on the outskirts of Paris, letting go of assets and developing a vehicle and component alliance with General Motors Co. as Europe's auto market declines this year to its smallest volume since 1995.

Topics: psa

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 2017
Less than three weeks to go and the Super Bowl LI – one of the most awaited and most watched sports events in television – will commence on February 5,...
by - January 16, 2017
New Tesla vehicles will have to pay when charging at any of the carmaker’s Supercharger stations once they exceed their annual limits. This comes as Tesla Motors announced revisions in...
by - January 16, 2017
Off-road driving with an open air vehicle provides another kind of experience for many off-road enthusiasts and fans. For this sake, Ford is planning to offer a version of the...
by - January 16, 2017
For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries