GM Europe head 'quits following Opel U-turn'

[neshapop]

FRANKFURT (AFP) - General Motors Europe head Carl-Peter Forster is quitting in disgust at GM's decision to hang on to its European unit Opel/Vauxhall, Spiegel magazine reported Friday in its online edition.

GM executive vice president David Reilly would replace Forster, as GM seeks to soothe anger over its decision to abandon this week a sale of Opel to Canadian group Magna and Russian partner Sberbank, Spiegel said.

"I cannot comment," a spokesman for General Motors Europe and Opel told AFP, adding: "If there are any personnel decisions we will make a statement on it."

Forster was a keen supporter of Magna's bid.

On Thursday, GM chief executive Frederick "Fritz" Hendersen had told reporters in Detroit that he would pick a new management team for Opel and its British sister brand Vauxhall within "days or weeks."

GM has decided to restructure Opel/Vauxhall itself, with the elimination of at least 10,000 jobs and possibly the closure of German factories, a move that has sparked widespread anger in Germany.

Germany is home to around 25,000 Opel workers, roughly half of GM Europe's total workforce, and the government had lobbied hard for Magna's bid in hopes of keeping all the German plants running.

Berlin had promised 4.5 billion euros (6.6 bilion dollars) in state aid to Magna, angering other European countries where the loss-making Opel has workers because of fears they would bear the brunt of badly needed restructuring,.

GM is now expected to seek aid from Germany and other European countries to carry out a three-billion-euro revamp. A German government spokesman said Friday he expected GM to provide details of its plans next week.

German Economy Minister Rainer Bruederle has called GM's behaviour "totally unacceptable" while North Rhine-Westphalia state premier Juergen Ruettgers said the move showed "the ugly face of turbo-capitalism."

Hendersen acknowledged that "we have some fence-mending and repair that needs to be done."

Spiegel said Reilly, who is British, brought with him Asian experience with GM's Chevrolet brand, which has increased sales in Europe as Opel has lost market share, calling the mooted nomination "a new provocation for Opel."

Reilly is considered a specialist in restructuring, and could make life difficult for workers at European plants, the magazine added.

Reilly, who has been based in Shanghai, also has experience at British Vauxhall plants in Luton and Ellesmere Port, two sites that welcomed the GM decision cautiously in hopes they might fare better than under Magna's ownership.

Just before GM made its announcement on Tuesday, Forster still appeared to believe the deal with Magna would go through, while saying it might take longer than expected.

http://ca.news.yahoo.com/s/afp/09110...gm_opel_reilly

[voyager]

Uh, may I be permitted to say 'Wow'?

[K-1]

Did Forster have a back-room deal with Magna? I mean, without Opel, GM Europe is rather flat. Unless he had a particular disdain for Opel, it seems getting rid of it would do little to help him. You'd think he'd be happy not having his "house" sold out from under him.

[carbarrister]

I think Frank Weber would probably like to reconsider his premature decision to abandon the Volt and return to Opel as Carl-Peter's fair haired boy!

[goochman]

Smells like someone had one of those VW documents in the apartment deals with Magna once things smoothed over for the acquisiton.

Dont let the door hit............................

[Quest]

Thursday Nov 05 2009
What next for Opel and Vauxhall?
Julian Rendell

I reckon we might be very surprised at the speed and depth at which General Motors gets going on the restructuring of Vauxhall/Opel after yesterday’s welcome decision to hold on to its European business.

From what I’m hearing, the project will be handed over to GM in the US and be overseen by CEO Fritz Henderson.
One of Henderson’s priorities is to find a new faces to replace Carl-Peter Forster and other directors at GME. It’s reckoned that the sell-off process exposed the GME board and the Henderson strategy is likely to include a major cull of suits similar to the one that cleared out the Detroit boardroom.

A possible successor is Eric Stevens, GM’s manufacturing boss, although there is a remote possibility that an outsider might get the job.

##

Once Henderson has got GME restructured by the end of next year, he’s tipped for retirement, and control of the new company likely to be handed over to GM International Operations.

That will put Vauxhall/Opel under the umbrella of Nick Reilly, one of the most senior Brits in the car industry and now running all of GM business outside Europe and NA.

http://www.autocar.co.uk/blogs/autoc...-vauxhall.aspx

Other sources seem to suggest he's been shown the door politely; if he didn't take it He would've been asked.

[jbartley]

Drama Queen...

i heard he was asked to leave, politely...

[CTGentleman]

Originally Posted by neshapop

Forster was a keen supporter of Magna's bid.

Then good riddance.

[mkaresh]

There's a good book that may never be written in this whole Opel deal.

I was shocked that they were going to split it off in the first place, even if GME has always wanted to break free.

GM masterfully played for time. Next up: announcing that Pontiac isn't really going away, after all.

[vetmst]

Originally Posted by mkaresh

There's a good book that may never be written in this whole Opel deal.

I was shocked that they were going to split it off in the first place, even if GME has always wanted to break free.

GM masterfully played for time. Next up: announcing that Pontiac isn't really going away, after all.

would love to read that book!!

[mkwelbornjr]

So what is wrong with Opel...their cars are some of GM's best and they are responsible for new midsize programs going forward. Does Opel develop the cars using GME resources....not sure I understand the relationship here. GM has turned opel into a strong player...why does everyone want them to sell?

[GMusa]

Whos cares. let him leave.

[benroethig]

Good. This makes it easier to better integrate Buick with Opel/Vauxhall.

[mbukukanyau]

Originally Posted by mkaresh

There's a good book that may never be written in this whole Opel deal.

I was shocked that they were going to split it off in the first place, even if GME has always wanted to break free.

GM masterfully played for time. Next up: announcing that Pontiac isn't really going away, after all.

If the Pontiac announcement ever comes, I think it will be after Uncle Sam exits the door.

[JonathanRohr]

This can be seen as a good thing.. if someone quits in this job market a business will likely be able to replace with someone more qualified and pay them less money.