|
GM Europe chief Forster to leave company: sources
2009-11-06
FRANKFURT (Reuters) - The head of General Motors' (GM.UL) European business, Carl-Peter Forster, is leaving the company after the surprise decision by GM's board to block the sale of Opel, two sources close to the situation told Reuters. "Forster told a small group of people today that he is leaving," one of the sources said. The son of a German diplomat and former BMW (BMWG.DE) executive was widely expected to run an independent Opel under jilted suitor Magna (MGa.TO), and his departure would mark the first high-profile manager exit as a result of the failed deal that triggered a storm of outrage in Germany. "While he may have been someone who avoided conflict in favor of mutual solutions he was an outstanding car expert and vehemently intervened in the development of new models like the Corsa, Insignia and Astra," a company source said, who described the departure as a loss for Opel. Forster spoke out in favor of the Magna deal just days before the board met to approve the sale in mid-September, irking his superiors in Detroit. "Carl-Peter Forster nailed his colors to the mast of Magna," said an Opel labor representative. German news portal Spiegel Online reported that Bob Lutz, a veteran GM executive, who is now head of group marketing, would become chairman of Opel. GM declined comment. Opel said Forster was still chairman and an announcement would be made should there be changes. Rising management star Nick Reilly, former plant director at Vauxhall's Ellesmere Port plant in northwest England and current head of GM's international operations, is set to lead GM's looming reorganization of Opel. "Nick Reilly is more than capable - someone we've got some respect for since the one thing he did have was integrity. But I don't think he's the sort of person who would make a decision based with any affinity for any one country," the labor representative said. Reilly, a Briton, had worked as sales and marketing chief for GM Europe in Zurich before moving to Asia to run GM operations there. TRUSTEE EXPELLED GM left leaders in Berlin and Moscow seething this week when it dropped plans to sell a 55 percent stake in Opel to Magna and its Russian partner Sberbank (SBER03.MM). GM will instead restructure Opel itself in a 3 billion-euro revamp it wants countries with Opel plants to help finance. The goal is to cut fixed costs at Opel by 30 percent -- in part by chopping a fifth of Opel's 50,000 staff -- but details are scarce. "There are signals from the company that GM will explain its plans next week. The German government is waiting for this explanation and will then evaluate it," German government spokesman Christoph Steegmans said in Berlin. Separately, the economy minister from the state of Thuringia told Reuters that Free Democrat (FDP) politician Dirk Pfeil, a critic of the Magna deal, was being replaced on the trust body that has overseen Opel since GM briefly dipped into bankruptcy. The minister, Matthias Machnig, said the four states with Opel sites had agreed that Pfeil needed to go because he was not representing their interests. Russian Prime Minister Vladimir Putin has suggested the Opel Trust -- not GM -- should have final say on the sale, but the Trust has said it did not need to approve GM's decision. The Trust, which controls a 65 percent stake in Opel, will dissolve once GM repays to Germany the rest of a 1.5 billion euro ($2.23 billion) bridge loan due by the end of the month. (Editing by Greg Mahlich and Simon Jessop)
|  |
 GM unit says no job cuts due at British car plant (2009-11-26) | | Saab's road ahead leads to shutdown -- or Chinese rescue (2009-11-26) | | GM grapples with Saab, Opel futures (2009-11-25) | | Ford, Subaru, VW win insurance industry picks (2009-11-17) | | Five Things the U.S. Can Learn from China (2009-11-16) | | Still losing cash, GM to repay aid early, plans 2010 IPO (2009-11-16) | | GMAC CEO Alvaro de Molina steps down (2009-11-16) | | Opel turnaround 'would cost GM twice as much' (2009-11-14) | | GM chairman says co. is committed to repaying aid (2009-11-10) | | GM's China 2009 sales pass 1.5m units (2009-11-09) | | GMAC still short of capital, may get extra aid (2009-11-09) | | Economic forecasts in bank tests miss their mark (2009-11-09) |  GM Europe chief Forster to leave company: sources (2009-11-06) | | Ford post surprise earnings, sees solid profit by 2011 (2009-11-02) | | CIT files for Chapter 11 bankruptcy protection (2009-11-01) | | Ford to close Canada plant in 2011, shed 1,400 jobs: union (2009-10-30) | | Two more UAW sites vote down Ford concession deal (2009-10-29) | | Ford taps China's Geely as favored bidder for Volvo (2009-10-28) | | Pay czar vows to rework AIG bonuses (2009-10-28) | | Ford picks Geely for Volvo cars bid (2009-10-28) | | Kansas City UAW plant workers reject Ford contract (2009-10-26) | | U.S. cuts pay at bailed out firms, BofA hits back (2009-10-22) | | Are Fed, Treasury finally giving banks some tough love? (2009-10-22) | | Administration plans big pay cuts at bailout firms (2009-10-21) | | Economy recovering in many areas, but not others (2009-10-21) |
|
|
|
|
| 
