PARIS Jan 25 Carlos Tavares could take over as
chief executive of PSA Peugeot Citroen in March, two
sources close to the situation said.
Tavares, the former second in command at rival Renault
, joined the loss-making French carmaker as
CEO-in-waiting on Jan. 1.
Peugeot, which is in talks on a capital injection from the
French government and China's Dongfeng Motor Co., had
previously only said that he would take over from current boss
Philippe Varin sometime this year.
"Some observers had thought Tavares could take over by Feb.
19 when Peugeot announces its annual results. That was the plan
... but Philippe Varin wants to remain in his post until the
Chinese president visits France in March," said one of the
"Given that Varin played an important role in the Dongfeng
deal, it is completely possible that the replacement can wait
until March," the source said.
A spokesman for Peugeot declined to comment.
Peugeot Chairman Thierry Peugeot told Le Figaro newspaper in
an interview published on Saturday that the board would soon
decide on the official date of the CEO transition.
Peugeot's board has agreed in principle to a capital
increase that would see the Chinese state-owned carmaker and
French government acquire minority stakes and the founding
family cede control, sources familiar with the matter said on
The company is looking to raise 3 billion euros ($4.1
billion) in a deal with Dongfeng, after unveiling a further 4.9
percent decline in global vehicle deliveries for 2013.
Peugeot has said it needs fresh funding to stay competitive
amid slumping car sales in its core European market and is also
seeking to deepen its relationship with Dongfeng, with whom it
already has a joint venture.
The two carmakers have been in discussions for months to
extend cooperation to other Asian countries, backed by a
multi-billion-euro share issue in which Dongfeng and the French
government would acquire significant stakes.
China's Xi Jinping is expected to make his first trip as
president to Europe in March, to meet the country's most
important export partners after a year of trade tensions, EU
diplomats have said.
(Reporting by Gilles Guillaume; Writing by Leila Abboud;
Editing by Pravin Char)