Peugeot shares tumble after boardroom shakeup

[March 30, 2009]  PARIS (AP) -- Shares in PSA Peugeot-Citroen tumbled more than 6 percent early Monday after the loss-making French car maker abruptly ousted its CEO and 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 announced Sunday, which will see former Corus CEO Philippe Varin take the helm of Europe's second largest carmaker behind Germany's Volkswagen AG from June 1.

Peugeot's stock had lost nearly 38 percent since Streiff took over little more than two years ago. At 0920 CET (0320 EST) the shares were off 6.2 percent at euro14.40.

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.

Peugeot-Citroen's new vehicle registrations in Europe fell 8.6 percent last year as the financial crisis and economic slowdown hit consumer demand and squeezed financing.

[Associated Press]

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