Report – Dongfeng deal to require management change at the top of PSA image

We just delivered the report that PSA’s CEO Phillipe Varin could be looking for a COO, but now sources familiar with the matter reported that actually the company is looking for a successor for Varin.

PSA Peugeot Citroen is actually interviewing candidates to replace Chief Executive Philippe Varin, because Chinese partner Dongfeng said management change should accompany a deeper alliance, the sources with knowledge of the matter said.

Varin himself is leading the hunt for a successor who has the caliber and experience to head a global carmaking alliance – qualities that Dongfeng has emphasized when discussing a capital tie-up and expanded industrial cooperation, according to two sources.

“The request regarding the succession came from Philippe Varin with the agreement of the supervisory board. The aim is to ensure the long-term continuation of the strategy Varin is leading,” said a third source close to the matter.

Varin, 61, plans to step down next year as head of Europe’s second-largest automaker and wants Tavares, 55, to initially serve as his No. 2, said the people, who asked not to be identified because the search has not yet been made public.

After speaking at an industry conference in Berlin on Saturday, Varin declined to comment on a report in Le Figaro that the troubled carmaker may hire former Renault chief operating officer Carlos Tavares as his new second-in-command.

Still, Tavares’s nomination has won the backing of senior Peugeot officials including Geoffroy Roux de Bézieux, chairman of the board’s appointments committee, and is likely to be announced within days, Le Figaro said in a report on Sunday.

Via Reuters, Bloomberg