When ex-Renault chief Carlos Tavares arrived at PSA last December, soon to become president, it’s fair to say there was a good deal more apprehension to be felt within the group HQ on Paris’s imposing Avenue de la Grand Armée than Christmas cheer.
Despite the best efforts of a hard-working executive group, the company had just lost an eye-watering £5 billion in trading over the previous two years. Car sales had flagged, and every one of them had been unprofitable.
Tavares’s mild-mannered predecessor, Philippe Varin, had already presided over 9000 redundancies, and, though soft-spoken, the new man was soon noted as the possessor of a steely stare and a race-winner’s determination. No one knew how deep he would cut, but the assumption was that the incisions would be painful.
Ten months later, the mood has changed. Tavares has not lost his reputation for toughness, but neither has he turned into the expected hatchet man.
Instead, he has launched a clear-minded turnaround plan called ‘Back in the Race’ which, for the latest half-year’s trading, has generated a tiny but highly symbolic trading profit of £5.6 million – an achievement he describes as “encouraging, not impressive” when we meet in his comparatively modest office on the ninth and most elevated floor of the building known throughout the company as ‘Grand Armee’.
“We use the word ‘encouraging’ because I wouldn’t want anyone getting the idea that the recovery had been achieved,” Tavares says, speaking fluently in what is the third of his four languages. “We have only just begun the recovery.” Tavares, 56, is Portuguese by birth but went to school and then trained as an engineer in France.
He has since had a series of English-speaking jobs, possibly the biggest of which was running all of Nissan’s operations in the US, including numerous manufacturing plants. Every second weekend during the racing season he found time to return to France to indulge his passion for racing a 600bhp single-seat GP2 car, at which he was remarkably successful.