Posted on November 6, 2009 at 4:00 PM
Filed under: Deal International | Detroit Breakdown
Tagged: general motors co. , opel

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General Motors Co. appears set to bring in a new team to lead the overhaul of its German Adam Opel GmbH unit.

The Detroit-based automaker, which earlier this week called off a planned sale of Opel in favor of keeping it in-house, said Friday that unit president Carl-Peter Forster will be stepping down. Replacements have not been announced, but sources say to expect company vice chairman Bob Lutz to chair Opel's supervisory board and GM international chief Nick Reilly to at least temporarily become CEO.

Forster came to GM with considerable fanfare from BMW AG in 2001 to help turn Opel around, but was viewed inside the automaker as an advocate for GM's proposed sale of a majority stake in the unit to a consortium led by Magna International Inc. (NYSE:MGA). With that sale called off by GM's board, the company apparently feels it needs a fresh team in place to extract tough concessions from Opel workers and try to restore the unit to profitability.

Lutz has worn a number of hats throughout his long career in the auto business, including leading a revamp of GM's North American product lines starting in 2001 and more recently taking over GM marketing. Earlier in his career he ran Ford Motor Co.'s (NYSE:F) European operation, and is expected in this new role to serve as a liaison between GM CEO Fritz Henderson and the operations team in Germany.

Reilly, who is currently based in Shanghai and is chairman of GM Daewoo, has a reputation as a cost-cutter. The U.K. native has been with GM since 1975, and has had a number of assignments in Europe including a run in the late 1990s as managing director of its Vauxhall unit.

His appointment to run Opel could be viewed as a warning shot fired at German politicians and unions that GM will consider sourcing future vehicles in Asia if the automaker is unable to streamline Opel. General Motors could use Reilly as the proverbial "bad cop" to come in and extract concessions, only to turn the helm over to a new CEO after cuts are made. - Lou Whiteman

Lou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman



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