Peugeot Citroen yesterday named former Renault number two Carlos Tavares as its next chief executive, a move that may help to secure new funding from Chinese partner Dongfeng.

Mr Tavares (55) will join CEO Philippe Varin’s team on January 1st and take over later in the year, the loss-making carmaker said in a statement.

Mr Varin (61) has led talks with Dongfeng Motor Group to deepen an existing joint venture with a multi-billion-euro share issue, in which the Chinese carmaker and the French state would acquire stakes in Peugeot, sources have said.

The surprise succession cuts short Mr Varin’s contract. Sources have said the handover is designed to address Dongfeng concerns about management quality and continuity as it weighs investing in an expanded alliance. – (Reuters)