March 29, 2009 - PSA Peugeot Citroën, Paris France

Peugeot Fires Its Chief Executive Christian Streiff

The French automaker PSA Peugeot Citroën fired its chief executive Sunday and replaced him with a veteran of the steel industry.

Philippe Varin

Peugeot, the No. 2 European carmaker behind Volkswagen, said that Philippe Varin, chief executive of the Anglo-Dutch steel company Corus, would replace Christian Streiff, who is stepping down immediately.

“Given the extraordinary difficulties currently faced by the automotive industry, the supervisory board decided unanimously that a change in the senior leadership position was necessary,” Thierry Peugeot, chairman of the board, said. “I am confident that under the leadership of Philippe Varin, the group will be able, with all the teams, to unlock its potential.”

The Peugeot family owns about a third of the company.

Like other global automakers, Peugeot, based in Paris, is struggling to stay afloat as a punishing recession reduces demand for cars and the global credit crisis hampers the ability of consumers to finance purchases. The company’s shares have fallen nearly 70 percent in the last 12 months, and its main suppliers are in serious difficulty.

Last month the company posted a 2008 net loss of 343 million euros, or $456 million. It said it expected to have another loss for 2009.

President Nicolas Sarkozy’s government on Feb. 9 extended 3 billion euros to Peugeot to safeguard French jobs. Mr. Streiff quickly ran into trouble, saying just two days later that he would cut 3,000 positions in France. He was also criticized by government officials for importing Peugeot cars made in the Czech Republic.

Mr. Streiff came to Peugeot in 2006 from Airbus, where he lasted just 100 days amid a battle with Airbus’s parent company, the European Aeronautic Defense and Space Company, over how much independence he would have to turn around the company after a debacle involving the construction of the A380 superjumbo jet.

Mr. Varin will take the helm of the company on June 1. A member of the managing board, Roland Vardanega, will act as interim chairman.

Mr. Varin, 56, is a graduate of the elite French schools École Polytechnique and the École des Mines. At Corus, which he joined in 2003, he helped the company merge with Tata Steel.

Original Story - New York Times

Press Release From PSA Below

PSA Supervisory Board appoints Philippe Varin as Chairman of the Managing Board

The Supervisory Board of PSA Peugeot Citroën, chaired by Thierry Peugeot, met on Sunday 29th March 2009 and took the decision to terminate Christian Streiff's contract as Chairman of the Managing Board and in his place, to appoint Philippe Varin effective from 1st June 2009. Philippe will begin familiarising himself with the activities of the Group from 15th April 2009. Until he officially starts in June, Roland Vardanega, member of the Managing Board, will act as interim Chairman. Other members of the Managing Board include Jean-Philippe Collin and Gregoire Olivier.

Philippe Varin will begin familiarising himself with the activities of the Group from 15th April 2009. Until he officially starts in June, Roland Vardanega, member of the Managing Board, will act as interim Chairman. Other members of the Managing Board include Jean-Philippe Collin and Gregoire Olivier.

Thierry Peugeot, Chairman of the Supervisory Board, said: "Given the extraordinary difficulties currently faced by the automotive industry, the Supervisory Board decided unanimously that a change in the senior leadership position was necessary. I am confident that under the leadership of Philippe Varin, the Group will be able, with all the teams, to unlock its potential."

Philippe Varin - Biography

Philippe Varin, 56, joins PSA Peugeot Citroën from Corus where he is currently Chief Executive. Prior to joining Corus, Philippe Varin spent a number of years at Pechiney.

After graduating from the elite French schools Ecole Polytechnique and Ecole des Mines, Philippe Varin joined Pechiney in 1978. He occupied a number of different executive functions across several sectors of the company (including R&D, strategy, controlling, project management) before being appointed as Head of the Rhenalu division in 1995. In 1999, he became Senior Executive President, Aluminium, and member of the Executive Committee.

Philippe Varin joined Corus, the then troubled Anglo-Dutch steel company, as Chief Executive in April 2003. Philippe Varin rapidly turned around the loss-making company. Philippe Varin successfully orchestrated Corus’ merger with Tata Steel in March 2007 as a way for the business to participate in the consolidation of the steel industry. He was asked to stay with the business in order to complete the integration of the company into the new Group.

Philippe Varin is married and the father of four children.