Volkswagen and Peugeot Citroen Shake Up Executives in Surprise Moves

In a flurry of activity at two leading European motor groups, Bernd Pischetsrieder has been unexpectedly replaced as chief executive of German car maker Volkswagen, while Christian Streiff has been named the new head of French rival PSA Peugeot Citroen. The surprise announcements came hours apart, with Pischetsrieder, 58, set to be replaced by Audi chief Martin Winterkorn, 59, at the end of next month. The sudden departure of Pischetsrieder follows his contract extension by five years in May, despite opposition from labour representatives on VW's supervisory board who were unhappy with his cost-cutting measures. Meanwhile, Streiff, 51, will replace Jean-Martin Folz as head of Peugeot Citroen, just as the company is grappling with falling sales in western Europe.

Key Takeaways:

• Bernd Pischetsrieder, 58, has been unexpectedly replaced as chief executive of Volkswagen by Martin Winterkorn, 59, with both sides agreeing to his resignation effective December 31.
• Pischetsrieder's departure comes despite a contract extension by five years in May, which was opposed by labour representatives unhappy with his cost-cutting measures.
• Christian Streiff, 51, has been named the new head of PSA Peugeot Citroen, replacing Jean-Martin Folz, who is set to retire after a decade in the role.
• Streiff previously quit as Airbus chief executive after just 100 days, citing the company's governance structure as a barrier to his restructuring plan.
• Peugeot Citroen is grappling with falling sales in western Europe, just as Streiff takes the reins.
• Pischetsrieder had clashed with his predecessor, Ferdinand Piech, who is now chief of the supervisory board.

Statistics:

• PWichetsrieder had been pushing through a cost-cutting programme affecting 20,000 jobs in Germany.
• Jean-Martin Folz has announced his retirement as chief executive of Peugeot Citroen in January, after a decade in the role.
• Streiff quit as Airbus chief executive after just 100 days in the job.
• 2,300 jobs were lost when Peugeot Citroen's Ryton plant in Coventry was closed in April.
• Peugeot Citroen's sales in main western European markets are falling.

Sources:

• "Volkswagen Loses Chief Executive Bernd Pischetsrieder" - The Times
• "Peugeot Citroen Names Christian Streiff New CEO" - Reuters
• "Airbus's Chief Quits After Just 100 Days" - The Times
• "Peugeot Citroen Announces 2,300 Job Losses" - BBC News
• "Folz to Retire as Peugeot Citroen Chief in January" - Automotive News Europe