Renault will not be opening bottles of champagne today, says one automotive analyst, following former COO, Carlos Tavares' surprise and imminent defection to PSA Peugeot Citroen, reports Just-Auto.
The new PSA chief - due to replace current post-holder Philippe Varin from 1 January - will have several immediate challenges to face - not least of which will be any decision to potentially restructure capacity at the automaker's Mulhouse plant although this could be put on ice if the French market continues its fledgling recovery notes the analyst.
Speculation in France has hinted PSA may be mulling the future of an assembly line at Mulhouse, as production at the site is already below 250,000 units per year, with the French automaker noting current volume at the factory was 224,000 last year.
"Certainly, there is a degree of nervousness, but pretty soon we will see probably positive [PSA] sales and revenues in comparison to last year, so the pressure will become just a little less," Metzler Bank automotive analyst, Juergen Pieper, told just-auto from Germany.
"Then of course, it is very difficult for Tavares when you see the French car market going up by maybe 5% and PSA by 5%, then definitely, it is more difficult for him to announce new measures."
The Metzler Bank analyst added he thought the speed of Varin's departure in January and Tavares' appointment was "quite unusual," noting in Germany such a move would normally necessitate a wait of around 12 months before starting at a direct competitor.
"This surprises me that Renault accepts this quick change," said Pieper. "He probably knows everything from Renault - there is certainly no Champagne [being] opened at Renault today.
Read more of this report from Just-Auto.