Carl-Peter Forster, the head of General Motors’ Europe operations, is stepping down just days after the US carmaker decided to hold on to its Opel/Vauxhall operations.
Revamping GM
Interactive graphic: Key events that have led to Opel U-turn
GM said last night that Mr Forster would leave the company but would remain in an advisory role as part of GM’s search for a permanent successor. He is expected to be succeeded on an interim basis by Nick Reilly, GM’s head of international operations.
The management shake- up follows a U-turn by GM earlier this week, after the board decide to hold on to Opel and Vauxhall, the UK subsidiary, instead of approving the sale of a majority stake to Canada’s Magna International and Russia’s Sberbank.
The decision sparked a furious reaction from the German government and unions. Russia also criticised the change of heart.
Mr Reilly, 59, has a reputation as an adept restructuring manager. But he faces the daunting task of overcoming opposition from the German workforce to turn the carmaker round, as all volume carmakers are expected to face a drop in sales next year.
GM said last night that it would start an “immediate external search” for a new head of European operations. People close to GM said it was putting together a transition team for Opel/Vauxhall that will oversee the creation of the restructuring plan within a week.
It remained unclear on Friday what, if any, role Hans Demant, the current head of Opel, would play in the restructuring team.
Mr Forster, who became GM Europe’s head five years ago and put the emphasis on raising the quality of the carmaker’s products, had been a strong supporter of the plan to sell the German carmaker to Magna, the Canadian car parts maker. He had strongly criticised the U-turn by GM’s board.
“He was really an Opel champion but in the end he was too close to Magna,” one GM insider said.
His departure highlights rising antagonism between GM and its German workforce, which was keen to split from its US parent.
Fritz Henderson, GM’s chief executive, admitted earlier this week that the long uncertainty over Opel’s future had strained relationships with the unions. “We have some fence-mending and repair that needs to be done,” he said.
Mr Henderson and Mr Reilly will travel to Germany next week to hold direct talks with Klaus Franz, head of Opel’s works council, to try to placate the unions, people familiar with the situation said.
They will also meet the German government to talk about possible state aid for Opel. A government official said Berlin expected GM to present its restructuring plan for its European operations next week. He hinted that the amount of state aid could be quite low since “GM is, apparently, back to full financial form”.
GM said earlier this week that it needed €3bn in state loans to restructure Opel/Vauxhall, a move that could result in the loss of 10,000 jobs, or a fifth of the workforce.
Additional reporting by Bertrand Benoit
