Gallois Chosen as PSA Chairman

The PSA Peugeot Citroen board has unanimously nominated Louis Gallois to become its chairman, according to media reports. His selection will be voted on by shareholders in April.

Gallois, who has been on the PSA board since late 2012, formerly headed defense giant Airbus and French railway group SNCF.

The highly regarded executive prevailed over Gerard Hauser, the Peugeot family's preferred candidate. Le Figaro says the family changed its mind after meeting with government officials.

Gallois will succeed Thierry Peugeot as chairman, marking the first time PSA has been chaired by a non-family member. The shift came as part of the company's €3 billion equity sale, which will reduce the Peugeot family's stake in the company to 14% from 25% and cut the number of family members on the board to two from four.