French Carmaker PSA Peugeot-Citroen Ousts CEO Christian Streiff

PARIS Mar 29, 2009; The AP reported that France's biggest carmaker, PSA Peugeot-Citroen, ousted CEO Christian Streiff on Sunday, saying "exceptional difficulties" confronting the auto industry require new management at the top.

Philippe Varin is being brought in from outside the company June 1 to replace Streiff, the company said in a statement. Roland Vardanega, a member of the three-man board of directors at the car company, will preside over the company until then.

Varin, 56, has worked for French aluminum producer Pechiney and British-Dutch company Corus, helping to turn around the steelmaker's fortunes.

Peugeot-Citroen last month announced a net loss of euro343 million ($433 million) in 2008 compared with a net profit of euro885 million a year earlier. It predicted another loss this year.

The carmaker, along with Renault SA, won a government rescue package that includes euro7.5 billion ($9.8 billion) over five years in low-interest loans. In return it promised not to lay anyone off this year or close factories.

Streiff, 54, was appointed president and chief executive officer of Airbus in July 2006, serving a brief term there before going over to Peugeot-Citroen.

The carmaker's statement noted that Varin, Streiff's successor, went to Corus in 2003 and brought the company to profit from its previous heavy losses. Varin then brought together Corus and Tata steel in 2007.

The decision to abruptly oust Streiff was made unanimously at a meeting Sunday of the company's board, headed by Thierry Peugeot, the statement said.