It’s been the weekend of the long knives for auto execs the world around. Rick Wagoner “did the right thing” and “resigned.” Meanwhile, across the frog pond, the board of French carmaker PSA had to unceremoniously fire Chief Executive, Christian Streiff, on Sunday. They replaced him with Philippe Varin, who will take up the position on June 1, Reuters writes.
The French board definitely has less of a stomach for losses than their American colleagues. Streiff was let go “after Peugeot last month posted a €343m ($460m) net loss and said it expected to stay in the red until 2010,” says Reuters. A measly three digit million number would barely register on a Detroit Richter scale. Not so in France. They want rolling heads:
“The board unanimously judged that the exceptional difficulties faced by the auto industry imposed a change of management,” Chairman Thierry Peugeot said in a statement.
Streiff said he “cannot understand the board’s decision.” (What’s so hard to understand, Christian? They don’t like you anymore.)
Streiff apparently had to clean out his desk, toss the family pictures in a cardboard box, and vacate his offices at the swank Paris PSA headquarters in a hurry. Board member Roland Vardanega will take on the role of CEO during the interim period until Varin steps in, Peugeot said.
Peugeot is number two in Europe in terms of sales behind Germany’s Volkswagen.
The Frenchman with the German name was CEO of Airbus before he took the helm of PSA in February 2007. Streiff was hospitalized at the end of May 2008 after a health incident. He returned to work in July and said at the time he had completely recovered.
According to Reuters, “Peugeot had already seen a number of other big changes in senior management, and analysts openly questioned whether people were leaving in anticipation of a merger.”
Abandon ship before a merger with whom? Fiat had been rumored a few weeks ago, but then adamantly denied any plans for a hitch-up. At the same time, a grande alliance between PSA and Renault was floated and immediately denied.
They do it on sports teams all the time. Couple of losing seasons, and it’s see ya later. Why CEOs feel they deserve better treatment is beyond me.
You don’t deserve anything. The word is “earn.”
well that’s how things should be no? company looses you loose as well. as simple as that. when you are at the head, things should keep rolling, or your head rolls.
didn’t the french revolution teach anyone anything???
Peugeot is number two in Europe in terms of sales
I can not understand people. Really. Peugeots are among the most unreliable cars on sale. Just read:
http://www.topgear.com/content/carsurvey/2006/features/04/1.html
Peugeots used to be reliable. 15 years ago. Most taxis in Spain were Peugeots or Citröens. “Diesel Peugeot” meant something good 15 years ago. No longer the case.
Nowadays Peugeots are overpriced and unreliable machines with very questionable style (…look at those snouts).
Could be worse. He could’ve been terminated like Georges Besse
This makes perfect sense. The CEO is solely responsibly for the firm he works for. The firm doesn’t work for him.
In the military, there’s the same kinda thing going on. The Commanding Officer is solely responsible for his command. If something happens, like, I don’t known, running his ship aground, the first guy to get fired is always the CO. And there goes his/her career.
Hey, Bertel! That Pug loss figure was announced last month but it was for the past year. Streiff was no genius but nor was he a Rick Wagoner.
I can not understand people. Really. Peugeots are among the most unreliable cars on sale.
As far as I can tell, Europeans are either numb, suckers, or both. My relatives who live outside Turin and were traditionally Fiat traditionalists are still shell-shocked over how solid and unremarkable their Accord is.
I’ve heard the same from anyone moving from anything European (and especially anything Italian or French) to Japanese stuff. There’s a reason why Toyota (prior to the meltdown) had been making respectable inroads with the Yaris, Avensis and Auris: the cars are still about as exciting as a dishwasher, but they’re much more reliable.
And yes, the Europeans have gotten better. I’m sure new Alfas and Peugeots aren’t going to bleed oil or see the radio and headlights turn off over a large bump in the road.
A is A :
Nowadays Peugeots are overpriced and unreliable machines with very questionable style (…look at those snouts).
Overpriced? They’re among the cheapest cars in their classes, and are always heavily, heavily discounted.
Questionable styling, I’ll agree with you. But as for pricing, they do very well.
Questionable styling, I’ll agree with you. But as for pricing, they do very well.
I’d say they’re quite attractive. I’ve always wanted a 407.
Of course, I happened to like Chrysler’s LH cars, so I’m what you might call predisposed to this look.
Europeans never placed as much emphasis on reliability as people in NA and they never will. But eventually they will expect at least the basic reliability meaning the car starts and runs. And unless the European companies can provide that they will slowly but surely lose its customers to the Japanese and the Koreans. It will take a decade to make a major dent but unless the Euro companies wake up, it’s inevitable. So far I haven’t seen any indication that European companies are starting to take the reliability seriously.
Americans do not seem to understand the Europeans view of the cars.
Cars here are hardly an absolute necessity, in most of the cases it is far easier to commute via public transportation then try to drive on crowded narrow streets and pay high petrol prices.
In Europe most of us do not drive more then 15000 kilometres a year and even that is a lot.
In a sense, cars here are basically luxury and people have other priorities to having an absolutely reliable vehicle.
I am far more interested in driving a nice looking car with a great interior and have one more trip to the service a year then having to drive a drab boring looking Toyota the whole year around. Now that would be a punishment.
So having tried Peugeot 308 versus Toyota Auris, my humble opinion is that the Peugeot is a much nicer looking car and immeasurably nicer place to be in.
As far as I can tell, Europeans are either numb, suckers, or both.
I am European ;-)
A relative of mine that sells cars (Fiats!) says that people is masochistic, buying the same unreliable Peugeot/Citröen/Renault/Fiat crap over and over.
Overpriced? They’re among the cheapest cars in their classes, and are always heavily, heavily discounted.
Discounted crap is still expensive crap. A car you can not trust is just a cruel joke.
Americans learnt the hard way that heavily discounted cars are usually very poor choices.
Americans do not seem to understand the Europeans view of the cars.
Some europeans neither. For instance, me.
So having tried Peugeot 308 versus Toyota Auris, my humble opinion is that the Peugeot is a much nicer looking car and immeasurably nicer place to be in.
Please read what Top Gear said about the Peugeot 307:
No area of fit, finish or reliability ranks above awful for this heap
http://www.topgear.com/content/carsurvey/2006/features/02/1.html
IMO Peugeot does not deserve my money. Peugeots have been very unreliable in the last 10 years.
I am far more interested in driving a nice looking car with a great interior and have one more trip to the service a year then having to drive a drab boring looking Toyota the whole year around
A 2004 Toyota Avensis is just what I drive. I am inmensely satisfied with my car: Zero problems, comfort, safety, efficiency (59mpg, imperial) and -in my eyes- a very beautiful car.
It is interesting to check how differently different people can think about the same issue.
(Gosh, you bought a Peugeot 308. You can say the same about me and my Avensis)
Americans do not seem to understand the Europeans view of the cars.
What, that it’s ok if it breaks down frequently? Is that the European take on consumer goods? That if it breaks down it’s not a big deal because it’s not absolutely essential?
Or, to put it another way: it’s ok if it’s crap, so long as it’s stylish crap that works well when it’s actually working, even if it costs me an extra thousand Euro in repairs each year?
Look, I’m a reasonably mellow dude, but that’s pushing it.
Side: I’m Canadian, so I’m halfway between the two. Maybe that’s why I don’t understand.