The Peugeot family gave its backing to Philippe Varin, PSA Peugeot Citroën’s new chief executive, to forge alliances in an effort to meet the challenges posed by the automotive industry crisis.

Thierry Peugeot, Peugeot chairman, said the group’s family shareholders would even consider diluting their 30 per cent stake if its development required it. But the family, which controls 45 per cent of voting rights, insisted on remaining the main reference shareholder and on Peugeot staying independent.