PSA's Streiff Fired, Varin to Take His Place

It looks like the economic crisis is now taking its toll on the executives that were, until now, in charge with the biggest manufacturers in the world or their country. After Wagoner was kindly pushed aside by the Obama administration, the French group PSA was witnessing its own CEO drama, on the same day, as Christian Streiff was not so kindly shoved away by the company board.

"The board unanimously judged that the exceptional difficulties faced by the auto industry imposed a change of management. I am convinced that under Philippe Varin's leadership, the PSA Peugeot Citroen group will be able to reveal all its potential," said Peugeot Chairman Thierry Peugeot in a statement quoted by Motor Authority.

Under Streiff's rule, the French group posted a 343 million euro loss last year. In addition, the CEO managed to step on French president's Sarkozy toes earlier this year over the terms of a possible bailout.

As if that wasn't enough, PSA registered a $460 million net loss last month, bringing the forecast to negative figures up until at least 2010, according to Reuters. Of course, a possible health problem as the basis for Streiff's removal has been speculated.

Philippe Varin, Streiff's successor, does not have any big shoe to fill, but is faced with the challenges of covering up a big hole left behind by the former CEO. Varin will assume the new position on June the 1st. Until then, PSA will be in the hands of Roland Vardanega.

At the beginning of the month, PSA has requested a 1.2 billion euros loan from banks and at a point rumors about a Fiat-PSA merger have come to the surface. It is unclear now where exactly does PSA stand in the industry or the direction it will take to navigate out of the crisis. Things are likely to remain so until June, when, as we said, Varin, in which all the group's hopes seem to reside, will take his office.