French car maker Peugeot has a new boss. The company has announced Carlos Tavares will be the next CEO charged with taking Europe’s second largest carmaker back into profitability.

PSA Peugeot Citroen also announced that Phillipe Varin will serve as Group temporary advisor to support implementing agreements signed with the French state and the Dongfeng Motor Group.

Peugeot closed its Aulnay plant near Paris last year. Earlier this month the 55-year-old Tavares, a former number two at Renault, said the company may need to pursue more cost savings beyond its current recovery plan.