UPDATE: PSA Hires Tavares

PSA Peugeot Citroen has hired former Renault COO Carlos Tavares to join its management board in January.

Tavares, 55, will succeed CEO Philippe Varin, who plans to leave the company at an unspecified time in 2014. PSA also confirms earlier media reports that Varin will concentrate on finalizing an equity deal with China's Dongfeng Motor Group or another big investor.

Tavares left Renault in August after telling Bloomberg News he wanted to run a carmaker but doubted he would get the chance at Renault because CEO Carlos Ghosn wasn't likely to leave. He will be PSA's third CEO in seven years.

The challenges facing Tavares include slashing PSA's cash 50%, expanding into markets outside Europe and leading the company back to sustainable profitability.