Tavares could take helm of Peugeot in March: sources

Sat Jan 25, 2014 7:46am EST
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By Gilles Guillaume

PARIS (Reuters) - Carlos Tavares could take over as chief executive of PSA Peugeot Citroen PEUP.PAP in March, two sources close to the situation said.

Tavares, the former second in command at rival Renault (RENA.PA: Quote), joined the loss-making French carmaker as CEO-in-waiting on January 1.

Peugeot, which is in talks on a capital injection from the French government and China's Dongfeng Motor Co. (0489.HK: Quote), had previously only said that he would take over from current boss Philippe Varin sometime this year.

"Some observers had thought Tavares could take over by February 19 when Peugeot announces its annual results. That was the plan ... but Philippe Varin wants to remain in his post until the Chinese president visits France in March," said one of the sources.

"Given that Varin played an important role in the Dongfeng deal, it is completely possible that the replacement can wait until March," the source said.

A spokesman for Peugeot declined to comment.

Peugeot Chairman Thierry Peugeot told Le Figaro newspaper in an interview published on Saturday that the board would soon decide on the official date of the CEO transition.

Peugeot's board has agreed in principle to a capital increase that would see the Chinese state-owned carmaker and French government acquire minority stakes and the founding family cede control, sources familiar with the matter said on Monday.   Continued...

Carlos Tavares poses after the company's First-Half 2013 results presentation in Boulogne-Billancourt, near Paris in this July 26, 2013 file picture. REUTERS/Benoit Tessier/Files