Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News Mexico
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
  • News
    • Photos
    • Automakers
    • Suppliers
    • Sales By Market
    • Environment/Emissions
    • Latest Launches
    • Sales and Retail
    • Car Cutaways
    • On The Move
    • China's Baoneng boosts stake in Qoros
      Citroen says Ami One two-seater is a new concept for affordable mobility
      EU, Japan back automatic braking regulation
      German auto jobs at risk from hard Brexit
    • Driv spinoff to build smart suspension systems
      Faurecia hopes to outperform uncertain market
      Plastic Omnium posts strong results despite global production slump
      Sweden's Veoneer forecasts flat sales in 2019
    • Porsche, Alfa Romeo and Nissan take big hits as European sales fall 5% in January
      Russia sales rise nearly 1% in January despite VAT increase
      Audi, Fiat, BMW among losers as Spanish sales fall 8% in January
      Volvo, VW gain sales in UK market down nearly 2% in January as diesel plunge continues
    • Volvo blurs the wagon/SUV line with the V60 Cross Country
      view gallery
      7 photos
      New Range Rover Evoque designed for the 'urban jungle'
      Range Rover Evoque gets hybrid tech to cut emissions
      Tarraco gives Seat a flagship SUV to help retain wealthy buyers
    • Ferrari will unveil V-8 hybrid supercar this year
      Mercedes outsold Audi in China last month on sedan demand
      Tesla's Musk visits Norway to review delivery delays
      Europe's minicar segment to shrink as VW, PSA mull axing their smallest cars
    • Suppliers to the new Porsche Panamera
      Suppliers to the new Peugeot 5008
      Suppliers to the new Seat Ibiza
      Suppliers to the new VW Touareg
    • Ford names new chief government relations officer
      Daimler appoints Airbus exec as finance chief
      VW China CEO to join VW brand's management board
      Mini USA names marketing veteran McKenna head of product planning
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Auto Shows
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
    • Bugatti to unveil $18 million special edition named after Ferdinand Piech, report says
      Subaru Viziv Adrenaline concept to debut at Geneva
      Citroen says Ami One two-seater is a new concept for affordable mobility
      China EV startup Aiways will launch SUV in Europe
    • Bugatti considers four-door model for 2024
      Frankfurt photo booth
      Frankfurt's best and wurst
      Merkel says German car industry must work to rebuild trust
    • Vietnam's first automaker now has names for first sedan, SUV
      Bugatti mulls SUV as part of broader model range
      Ferrari Monza supercars will earn $755 million in revenue
      China's GAC likely to debut in Europe with an EV
    • VW will launch SOL EV brand in China with subcompact crossover
      view gallery
      9 photos
      BMW's iX3 concept heralds electric expansion
      view gallery
      9 photos
      BMW will export iX3 electric SUV to Europe, U.S. from China
      view gallery
      15 photos
      Mercedes-Maybach is betting on a hybrid SUV-sedan look
    • view gallery
      7 photos
      Jeep finds green groove with plug-in hybrid SUV concept
      China's luxury market to grow to 3M a year, Audi, Mercedes predict
      view gallery
      10 photos
      Mercedes hints at new styling with sedan concept
      Foreign automakers embrace China as EV development hub
  • Opinion
    • Blogs
    • Luca Ciferri
    • Douglas A. Bolduc
    • Paul McVeigh
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
  • Maps
    • E-Car & Component Map of Europe
    • Powertrain Map of Europe
    • Assembly Plant Map of Europe
  • Supplements
    • Connected Car
    • Talk From The Top
    • BMW 100
    • Car Cutaways
  • EVENTS & AWARDS
    • Automotive News Europe Congress
    • Rising Stars
    • Eurostars
    • Leading Women
  • E-MAGAZINE
    • Read the latest issue
    • Download the app
    • Subscribe
  • More
    • E-Magazine
    • Contact Us
    • 2019 Media Kit
    • About Us
MENU
Breadcrumb
  1. Home
  2. Blogs
Blogs
April 14, 2014 01:00 AM

PSA's recovery will be boosted by the 'Tavares factor'

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Luca Ciferri is Editor of Automotive News Europe.

    PSA/Peugeot-Citroen CEO Carlos Tavares is the first to admit that his turnaround strategy for the struggling automaker isn't a wonder cure. "I cannot make miracles," he said at Monday's presentation of his Back in the Race recovery strategy for the company.

    That blunt answer shows the essence of PSA's new CEO: a tough, no-nonsense executive who always tells the truth even when a lie would have made everyone happier.

    Tavares's restructuring plan for PSA aims to return the automaker to profitability by 2018. He plans to do this mainly by boosting efficiency and productivity, rather than relying on a rebound in PSA's European home market.

    The task will not be easy as Europe's second-largest automaker has lost 7.5 billion euros in the last five years and tripled its debt to 4.5 billion euros.

    Tavares is PSA's third CEO in five years. Here's why I think he will succeed where others failed:

    • He is a car guy with a proven track record at Renault and Nissan, unlike his predecessors Christian Streiff and Philippe Varin who were not familiar with the auto business
    • PSA's planned 3 billion-euro capital increase will reduce net debt to a manageable level
    • Tavares has more operational freedom than his predecessors after the Peugeot family lost majority control of the company with the entry of the French state and Dongfeng Motor as major PSA shareholders.

    PSA also has some winning new cars in an industry where product is king. The Peugeot 308 is the 2014 European Car of the Year. The Citroen C4 Cactus, which goes on sale in June, could easily become a must-have for European buyers who want something truly innovative and radically different from the Volkswagen Golf, Europe's best-selling compact car.

    Last but not least, Tavares has only one option at PSA: to succeed. He badly wanted to be CEO of an automaker and his ambition led to his ousting as Carlos Ghosn's No. 2 at Renault last summer. Tavares is 55. Turning around PSA is his biggest challenge to date -- and likely his last chance to show he can successfully run a top automaker.

    Monthly E-Magazine
    Thumbnail
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Automotive News Europe Monthly E-Magazine

    Sign up to receive your free link to each monthly issue of Automotive News Europe as soon as it's published.

    GET THE E-MAGAZINE
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584


    Email Us

    Resources
    • About us
    • Contact Us
    • 2019 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • Photos
        • Geneva Photo Gallery
        • Beijing Photo Gallery
        • Frankfurt Photo Gallery
        • Paris Photo Gallery
        • Shanghai Photo Gallery
      • Automakers
      • Suppliers
      • Sales By Market
      • Environment/Emissions
      • Latest Launches
      • Sales and Retail
      • Car Cutaways
      • On The Move
    • Auto Shows
      • Geneva Auto Show
      • Frankfurt Auto Show
      • Paris Auto Show
      • Beijing Auto Show
      • Shanghai Auto Show
    • Opinion
      • Blogs
      • Luca Ciferri
      • Douglas A. Bolduc
      • Paul McVeigh
    • Maps
      • E-Car & Component Map of Europe
      • Powertrain Map of Europe
      • Assembly Plant Map of Europe
    • Supplements
      • Connected Car
      • Talk From The Top
      • BMW 100
      • Car Cutaways
    • EVENTS & AWARDS
      • Automotive News Europe Congress
      • Rising Stars
      • Eurostars
      • Leading Women
    • E-MAGAZINE
      • Read the latest issue
      • Download the app
      • Subscribe
    • More
      • E-Magazine
      • Contact Us
      • 2019 Media Kit
      • About Us