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.