The Peugeot-Citroen shares first fell and then tumbled more than 6 percent early Monday. This came in the wake of the loss-making French car maker abruptly removed its CEO. It has named a long-time steel industry executive to replace him.
Peugeot-Citroen cited “exceptional difficulties” in the auto industry as the reason for the boardroom shakeup.
Peugeot’s stock had lost nearly 38 percent since the former CEO Streiff took over little more than two years ago. Peugot-Citroen last month announced a net loss of euro343 million in 2008 and forecast more losses this year.
Earlier this year Peugeot-Citroen and domestic rival Renault SA received euro7 billion in French government loans as part of the state-backed bailout of the auto industry.
In fact, the auto units around the world seem to be losing their marbles. Except for the TATA of India, who have infact gone ahead and launched their NANO, no news from the auto world is positive these days.