GM-Europe Chief Reportedly Quits; Opel Restructuring Begins
November 06, 2009
The chief of General Motors European operations, Carl-Peter Forster, plans to leave the company after this week's u-turn that calls for the automaker keeping rather than selling Opel. European media reports claim. GM's head of all international operations Nick Reilly is said to be stepping in for the time being.
GM is not commenting on the personnel changes. However, on Thursday - the day after GM's announced it would keep Opel -- GM CEO Fritz Henderson told reporters in Detroit that a transition team is being quickly gathered to oversee the restructuring of GM's German subsidiary. GM also will keep its British subsidiary, Vauxhall
Forster, GM Europe's chief for five years, supported the plan to sell Opel to Canadian partsmaker Magna, which was being financed by Russian bank Sberbank. He openly critized the decision by GM's board to keep Opel. Subsequently, Forster is rumored to have been 
asked to take charge of Germany car supplier Schaeffler, which is trying to digest its recent unfriendly acquisition of Continental, another German supplier.
Reilly, meantime, is known as a tough restructuring expert, having headed GM's Asia-Pacific operations before taking charge of all of GM's overseas operations this summer. Back then, his duties included GM's takeover of then-failing Daewoo in Korea and turning it into one of the automaker's most important base of operations, particularly for small cars, many of which are Opel based.
Financing a Restructuring
Henderson said this week GM would re-pay a $1.3-billion German government bridge loan and could finance Opel's restructuring, estimated to cost about $4.5 billion, without Germany's help. While Germany and Russia are unhappy with GM's aboutface on Opel, other countries - notably Spain, Poland and the U.K. - are hailing the decision. GM will turn to them for state aid. GM could also inject cash as well, he said, as the bankruptcy exit plan allows the automaker to do what's need to run its global business.
Henderson refused to give details of the restructuring, which most certainly will include the closing of plants, probably in Germany where Opel has four. Estimates are that a restructuring could cost 10,000 jobs. That fact prompted Opel workers to walk off the job this week in protest.
Change of Heart
Regarding why GM changed its mind, Henderson said the financial position of both GM and Opel are much improved since the pre-bankrupty period when the automaker put Opel on the auction block. In addition, he said, GM's board of directors post-bankruptcy -- mostly new members - assessed the situation and voted unanimously to keep Opel. -- Michelle Krebs, Senior Analyst and Editor at Large
Photos by GM
1 - Carl-Peter Forster
2 - Nick Reilly
Posted by Michelle Krebs at 7:20 AM under Business , GM , Personalities | Comments (0) | digg this | Seed Newsvine
Leave a comment