PSA Peugeot Citroen chief executive officer, Carlos Tavares, has proven its worth leading the company that was reporting billions of euros in losses just two years ago.
After around 12 months leading the second largest European carmaker, the former Renault No. 2 has proven he can be a skilled financial strategist or a fearless cost savings promoter when the situation calls for his decisions. The automaker, just bailed out by a 3 billion euros capital infusion by investors and the acquisition of 14 percent matching stakes by the French government and China’s Dongfeng, has returned spectacularly to positive results, paring the years of losses in 2014. Two major events could highlight Tavares leadership so far – besides the obvious “Back in the Race” strategy. The first one already happened: on March 23 the firm was reinstated (after a two-and-a-half-year absence) into the French benchmark CAC-40 stock index. Since March 31, 2014, when Tavares officially became PSA’s chief, the company’s stock rallied almost 50 percent as of last month, from 11.30 euros to 16 euros per share.
The second major symbolic move is scheduled within the next year-and-half, with PSA’s executives relocating from the current headquarters to another location. A bold move indeed, taking the top managers from the 50-year old location in the middle of Paris to a not so glamorous, but way cheaper, Rueil-Malmaison suburb around 11 km west of the capital. The CEO said the new headquarters will incur cost savings of around 50 million euros annually and would also lift synergies in the company after Peugeot, Citroen and DS executives will only share one location.
Via Automotive News Europe