Due to fall in sales, the Peugeot family, requested the replacement of Chief Executive Philippe Varin and his management team.
The Peugeot family owns 37.9% of the company’s voting rights and 25.2% of the company’s capital through the Societe Fonciere Financiere et de Participation (FFP) holding. Since the beginning of this year PSA shares lost 24% of their value.
Philippe Varin joined the company as chief executive in 2009, trying since then to move Peugeot and Citroen brands upmarket and to expand PSA’s international footprint. Things worked very well for one year and a half, with solid sales due to the Peugeot 3008 crossover and Citroen DS models and also thank to government scrappage incentives. But the company’s business began to go down, mainly due to southern Europe.
From January until May, PSA’s sales fell 15% in the EU, and the total market lost 7.7%. The company’s market shares lost 12.1% and shares fell 24%. This and the loss making alliance with GM may cost Philippe Varin and his management team their jobs.