(Clarifies in penultimate graf directors replaced on
supervisory board by employee representatives)
PARIS, March 12 PSA Peugeot Citroen is
losing two senior members of Chief Executive Philippe Varin's
top team, presenting a further challenge to the carmaker in its
efforts to reverse mounting losses.
Brands director Frederic Saint-Geours and research and
development chief Guillaume Faury are both leaving Varin's
management board, the company said in a statement on Tuesday.
Saint Geours, often cited in press reports as a leadership
candidate for French employers' organisation Medef, will stay on
as a "special adviser", but Faury is leaving the company to
become CEO of the Eurocopter division of defence group EADS
Peugeot described the personnel changes as a timely
reshuffle. "To ensure the efficient implementation of the
group's strategy, a leaner management team has been set up
around Philippe Varin," the Paris-based company said in its
Peugeot is cutting more than 10,000 jobs and closing a plant
north of the French capital as it struggles to reverse
auto-division losses of 1.5 billion euros ($1.95 billion) last
The company has also sold assets including its headquarters
building and halted or slowed vehicle programmes to conserve
Europe's auto market slump is "putting extreme pressure on
cost-management across the company and in particular R&D", Faury
said in a March 5 interview at the Geneva auto show.
Faury, who resigned as Eurocopter research and development
chief to join Peugeot in 2009, will return as CEO on May 1, the
EADS helicopter division said.
He will be replaced as Peugeot research and development
chief by Gilles Le Borgne, who oversaw the design of the new
mid-sized vehicle architecture underpinning a range of new
models starting with the Citroen C4 Picasso to be introduced
Peugeot said that two non-executive directors,
Ernest-Antoine Seilliere and Joseph Toot Jr., are also standing
down early and will be replaced on the supervisory board by
The departures leave three executives on Varin's management
board: Chief Financial Officer Jean-Baptiste de Chatillon,
Shanghai-based Asia chief Gregoire Olivier and programme
director Jean-Christophe Quemard.
($1 = 0.7684 euros)
(Reporting by Laurence Frost; Editing by James Regan and David