PSA Peugeot Citroen cut two executives from board as CEO Philippe Varin plans to end auto losses.
“To ensure the efficient implementation of the group’s strategy, a leaner management board has been set up” around Varin, the Paris-based company said today in a statement.
The changes will be effective April 2nd, the same day when Varin will have his contract extended. Frederic Saint Geours, who has been a Peugeot board member since 2009, will leave the automaker’s top executive body and become a special adviser, while Guillaume Faury, Peugeot’s development chief, will leave the company for good.
Last month Peugeot promised to reduce cash-consumption rate by 50% this year and breakeven by 2014, after is has burned 3 billion euro ($3.9 billion) in 2012. Peugeot also plans to cut its French workforce by 17% in the following two years as the auto market in Europe is expected to shrink in 2013 for the 6th consecutive year. For 2012 the automaker reported a loss before interest of 576 million euro.
“It’s not a bad thing that they streamlined the top management,” said Jens Schattner, an analyst at Macquarie Europe Ltd. in Frankfurt. “But this is just a reshuffling.”