Peugeot boss says no Faurecia sale as part of profitability plan

PARIS Mon Mar 3, 2014 6:41am EST

Carlos Tavares, incoming Chief Executive Officer of French carmaker PSA Peugeot Citroen, attends the company's 2013 results presentation and the news conference to unveil long-awaited Dongfeng deal in Paris February 19, 2014. REUTERS/Pascal Rossignol

Carlos Tavares, incoming Chief Executive Officer of French carmaker PSA Peugeot Citroen, attends the company's 2013 results presentation and the news conference to unveil long-awaited Dongfeng deal in Paris February 19, 2014.

Credit: Reuters/Pascal Rossignol

PARIS (Reuters) - French carmaker Peugeot PSA (PEUP.PA) would not consider selling its 51.7 percent holding in parts supplier Faurecia (EPED.PA) as part of its profitability plan, new Chief Executive Carlos Tavares said on Monday.

He did not rule out a sale, but asked why such a sale would not be part of an asset sale program to improve profitability, he said. "Because that's cash, not profitability. There's a big difference between putting cash in the bank and generating profit."

Peugeot (PEUP.PA) is preparing to sell 14 percent stakes to Chinese partner Dongfeng Motor Group (0489.HK) and the French state in a 3 billion euro ($4.1 billion) share issue.

Tavares, a former head of operations at Peugeot's rival Renault (RENA.PA), was speaking to a press panel organized by French trade publication 7pm Auto in collaboration with Reuters, his first full interview since taking operational charge at Peugeot last month. Boss says will not sell faurecia as part of plan to improve profitability

(Reporting by Andrew Callus and Gilles Guillaume; Editing by Brian Love)

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