Speech by François Rollier at the Citroën S.A. AGM (27 June 1973)

In this document

This is internal memo no. 036, dated 29 June 1973, circulating the full text of the Speech by François Rollier delivered on 27 June 1973 before the General Meeting of Citroën S.A. pp. 20-21.

The sale of the FIAT stake

Rollier announces that FIAT has sold its 49% stake in the company PARDEVI to Michelin, which holds the majority of Citroën S.A. shares p. 21. This sale leads to the resignation of the two directors representing FIAT since 1970, Messrs Giovanni Nasi and Francesco Rota p. 21. Rollier welcomes "an industrial alliance" which included "positive acquisitions" but whose innovation, deemed necessary by the partner, "did not go in the direction of its interests"; Citroën "has therefore regained its independence" pp. 21-22.

The Berliet-Volvo file

A joint statement by Berliet and Volvo A.B. mentioned a possible merger between Berliet and Volvo's Heavy Goods Vehicle division. The studies, not yet completed, are expected to conclude "in the very first days of July" p. 22.

Results and investments

At the end of May 1973, Citroën's turnover increased by 15.5% (production +2.4%), and Berliet's by 17.6% p. 23.

From September, the new facilities at the Rennes plant are expected to increase the production rates of the GS p. 23. The investment programme linked to the release of the land in the 15th arrondissement (Javel) will be financed by self-financing, with partial recourse to external capital for 1974-1976 p. 24. Abroad, development in South Africa, Yugoslavia, Tunisia and Spain; in Spain, production capacity is expected to increase from 260 vehicles/day to 500 in 1976, then 1,000 in 1980 p. 24.

Regulatory context

Rollier mentions three external factors: the strengthening of safety/pollution/noise regulations, new intercity speed limits, and the GATT "Nixon Round" pp. 25-26.

Context

Historically, Citroën was then a subsidiary of PARDEVI, a holding company jointly controlled by Michelin and Fiat since 1968-1970. Fiat's exit in 1973 marked the end of this alliance and left Michelin as the sole majority shareholder, in a context where Citroën, heavily in debt, would join Peugeot as early as 1974-1975 — as confirmed by subsequent archives from Rollier himself.

Berliet, Citroën's heavy goods vehicle subsidiary, would ultimately be the subject of a merger with Saviem (Renault) rather than with Volvo, as press clippings from December 1974 would mention.

The GS, launched in 1970, and the speed limit introduced in 1973 in France (following the first oil shock) constitute the economic backdrop of this speech.

Archivist's perspective

This document is a pivotal piece: it captures, in the heat of the moment, the time when Citroën lost its industrial shareholder Fiat and found itself alone in the face of its financing needs pp. 21-24 — a direct preamble to the merger with Peugeot that would take shape a year later.

It also sheds light on the fragility of Berliet, whose future remained suspended, in June 1973, on negotiations with Volvo p. 22 which would not succeed, as the Le Figaro clippings of December 1974 would show.

For the study of Paul Magès' work, this text does not address any technical aspect; it relates more to the industrial and financial history of the Citroën firm, useful for situating the context in which its innovations (such as the GS) were commercially distributed.