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When Carlos Tavares took the helm of PSA in January 2014, the owner of Peugeot and Citroen was on the brink of failure. The car maker was the third largest mass market auto manufacturer in Europe, behind Volkswagen and Renault, but it was piling up losses as it struggled to compete in an over-supplied market.
Tavares has performed a remarkable turnaround by going big in China, slashing the cost base, restructuring in the likes of Russia and Latin America, cutting unprofitable model lines and selling non-core businesses. Investors, which include the French government, China’s Dongfeng Motor Corp and the Peugeot Family with 12.8% stakes each, have been rewarded. The stock has risen 46% since Tavares took the helm in March 2014. A €2.5 billion net loss in 2013 had turned into a €1.73 billion net profit in 2016.