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Two symbolic events epitomize how PSA/Peugeot Citroen CEO Carlos Tavares has put Europe’s second-largest automaker back on track a year after it needed a 3 billion euro bailout to survive Europe’s long economic slump. One event shows that Tavares is a skilled financial strategist and the other highlights that he is fearless when it comes to slashing the automaker’s fixed costs.
The first big event happened March 23. That is the day PSA returned to France’s benchmark CAC-40 stock index after a two-and-a-half-year absence during which time the automaker reported billions in operating losses. Those losses ended in 2014. As of last month, PSA’s share price had risen nearly 50 percent to 16 euros from 11.30 euros on March 31, 2014, which is when the former No. 2 at Renault officially started as PSA’s chief.
The second big event will occur in the next 18 months when PSA’s top managers relocate from the automaker’s headquarters of about 50 years in the heart of Paris to the less-glamorous, less-expensive Rueil-Malmaison suburb 11km west of the city. Tavares says the move will save PSA about 50 million euros a year in real estate costs. It also will improve synergies between PSA’s three brands, he said, because Peugeot’s leaders are in the downtown location while Citroen and DS executives are in a separate building 6km away.
The first big event happened March 23. That is the day PSA returned to France’s benchmark CAC-40 stock index after a two-and-a-half-year absence during which time the automaker reported billions in operating losses. Those losses ended in 2014. As of last month, PSA’s share price had risen nearly 50 percent to 16 euros from 11.30 euros on March 31, 2014, which is when the former No. 2 at Renault officially started as PSA’s chief.
The second big event will occur in the next 18 months when PSA’s top managers relocate from the automaker’s headquarters of about 50 years in the heart of Paris to the less-glamorous, less-expensive Rueil-Malmaison suburb 11km west of the city. Tavares says the move will save PSA about 50 million euros a year in real estate costs. It also will improve synergies between PSA’s three brands, he said, because Peugeot’s leaders are in the downtown location while Citroen and DS executives are in a separate building 6km away.
