Philippe Varin faces tougher 2nd term as PSA chief executive

Article by Anita Panait, on June 3, 2013

Philippe Varin has started this week his second four-year term as chief executive of troubled French carmaker PSA/Peugeot-Citroen. Just like his first term, he will have to balance and counterbalance the interests of the carmaker’s major stakeholders – two which are the Peugeot family and the French government – to ensure PSA’s continued survival.

But that might be hard to accomplish, considering that each stakeholder has their own plans for PSA. For instance, the Peugeot family does not agree to all of Varin’s decision, including the formation of an alliance with US carmaker General Motors. Co. On the other hand, the French government is not entirely agreeable to Varin’s cost cutting plans, which in part entails letting go some of its workforce.

France wants jobs at PSA to remain and has taken a board seat in exchange for financial support. Bernard Jullien, an economist at French think tank Gerpisa, noted to Bloomberg that Varin has not been able to impose his choices at the carmaker.

PSA is considerably suffering worse than its European rivals, no thanks to the continuing economic slump in the region. This could be attributed to the fact that it builds most of its vehicle in high-cost France. It could also be attributed to the fact that unlike those of its German counterparts, PSA’s vehicles lack the status to fetch higher prices and entice buyers abroad.

According to an estimate of the Center for Automotive Research at the University of Duisburg-Essen, PSA around EUR510 ($658) on each car it sold in 2012. On the other hand, fellow French carmaker Renault lost about EUR241 while German company Volkswagen Group earned EUR751, the center says. PSA is considering a capital increase to continue financing its operations, this after it consumed around EUR3 billion in 2012, three people privy with the matter told Bloomberg. [source: automotive news - sub. required]

If you liked the article, share on:

Topics: psa

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 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