Philippe Germond is replaced by Caroline Parot, on a background of a sharp decline in the Stock price.
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Abrupt change of a driver at Europcar. Philippe Germond, the boss since September 2014 the number one european rental cars, has just been rejected by its board of directors. Ex-CEO of SFR and of the PMU, Philippe Germond has been immediately replaced in the presidency of the board of directors of Europcar by Caroline Parot, its director general, announced the company on Friday, 25 November.
In the official press release, Jean-Paul Bailly, the former head of the RATP, who chairs the supervisory board of Europcar, has thanked Philippe Germond, and wished him ” the best for the future “. In spite of the words affectionate, the break was brutal. the ” Philippe learned that he was to go there at least eight days, he did not suspect anything “, says a witness. On October 4, again it had presented to investors its strategy for 2020, with the ambition to achieve a turnover of more than € 3 billion, including through acquisitions. He hoped to still be at the wheel of Europcar in four years, at the end of the plan.
The council decided otherwise, and has done away with a cheque. On Friday, the company was keen to reassure the markets : there is no wolf in the accounts. The projections to 2020 remain the same, that the financial forecasts for 2016. The company is expected to release for the fiscal year that will end at the end of December the best results for the past ten years. The board emphasizes, moreover, how much of Philippe Germond has ” played a key role “ in the recovery of the profitability of the group, which had lost money for eight consecutive years. She also commended for the success of the ipo of Europcar, in June 2015.
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Divergence with the fund Eurazeo
that was the press release, is that there has been discrepancies between Philippe Germond and his council, and, beyond that, its reference shareholder, the fund Eurazeo. the ” This had never been the mad love between them, is believed to know a close to the folder. the there had already been skirmishes with Patrick Sayer, the pattern of Eurazeo. “The decline in the Stock price of Europcar, down by a third since the ipo on Euronext in spite of good financial results, has undoubtedly strained the relationship. the ” And yet, the evolution of the title is due in good part to external factors, such as the fall in the Stock of Avis and Hertz, or the Brexit “, note a is close to the business.
Difficult to know the exact reasons of the disagreement. the ” A lack of personal involvement of Philippe Germond “, ahead. the ” A more strategic issue “, suggests another. The chairman of the management board wished to make investments massive enough in the next few years, in order to ensure the sustainability of Europcar in a mobility market in turmoil, even though it weighs a little on the profits. Eurazeo, which has already reduced its stake to 42 % and may wish to continue to opt out, proved to be reluctant to such an effort. A version denied by the fund.
” The reality is, it is simply that, even though Philippe has done a great job, the new management team he put in place is sufficient in itself ” commented an administrator.
the Only official statement of the board : Caroline Parot, the former chief financial officer to become director general and then today, number one, is responsible for entering Europcar ” in a new acceleration phase of its strategic deployment “.
In the immediate, unexpected change at the head of the group has done little to deflect the action of the way : Friday, the end of the session, Europcar rode a shy 0.4 percent. The French champion of the lease is € 1.2 billion in Stock.