Peugeot Citroën's (PEUGF) net losses narrowed to €2.32B in 2013 from €5.01B in 2012, when the ailing French car maker took €3B in charges for asset impairments.
Peugeot's recurring operating loss fell to €177M from €560M, while revenue slipped 2.4% to €54.09B. (PR)
Peugeot's results come after it announced a €3B capital raising in which China's Dongfeng Motor Group (DNFGF) and the French state will invest €800M each and receive a 14% stake in Peugeot. The latter will also issue warrants to its existing stockholders.
The Peugeot family will lose control of the 204-year-old company for the first time, with its holding dropping to 14% also from 25.4%.
Struggling PSA Peugeot Citroen (PEUGF) is reportedly interviewing potential replacements for CEO Philippe Varin, who is heading the search for his successor. A source said that the appointment process is "not far from a conclusion."
The interviews come amid pressure from Chinese joint-venture partner Dongfeng (DNFGF), which will only deepen its alliance with Peugeot if the latter makes management changes.
The companies are in talks to extend their co-operation to new markets, and for Peugeot to carry out a €4B share issue in which Dongfeng and the French government would buy stakes in Peugeot. However, the company's founding family are unhappy about the loss of control that a capital hike would entail.
Chinese automakers surge after the government excludes foreign brands from a preliminary list of vehicles approved for purchase by state agencies. The move will help local brands gain in the 80B yuan ($12.7B) market at the expense of foreign automakers like GM (GM) and Toyota (TM). In the past, overseas brands accounted for 80% of the official pool.