PSA/Peugeot-Citroen reported a surprise surge in first-half cash flow and the first auto-division profit in three years, as its turnaround plan began to show results.
Tag Archives: PSA CEO Carlos Tavares
How PSA CEO Carlos Tavares plans to turn around Europe’s second-largest automaker
New PSA/Peugeot-Citroen CEO Carlos Tavares takes over an automaker that has lost more than 7 billion euros in the last five years because he says, “making money was not the core value here.” That is one of the first things the 55-year-old former No. 2 at Renault plans to change.
Other challenges include reducing PSA’s bloated car lineups, strengthening the automaker’s presence in China, adjusting the company’s European production footprint and navigating the potential minefields that come with having to please powerful new shareholders.Tavares welcomes the long list of tough tasks. “When you have the opportunity to contribute to a turnaround, I think that’s exciting,” he told Automotive News Europe.
New PSA CEO Carlos Tavares eyes further cost cuts
PSA/Peugeot-Citroen may seek more cost savings and does not rule out capacity cuts in France after 2016 if they are needed to turn the struggling carmaker around, new CEO Carlos Tavares said.Tavares also pledged to accelerate a 1.5 billion euro ($2.1 billion) savings drive already underway at the company.
PSA expects to achieve positive free cash flow no later than 2016. “I am very confident we can pursue the turnaround of the company,” he said.
