Posts Tagged ‘GM Europe President’

GM Pumps Another $1 Billion into Loss Making Opel

Reilly retains Opel CEO to responsibilities. Billions more sought from European governments as Opel will lose money in 2010.

by on Jan.15, 2010

GM last week gave Opel another €650 million (~$930 million) in cash to keep it afloat.

The Adam Opel GmbH Supervisory Board today formally appointed GM Europe President Nick Reilly as CEO responsible for all Opel/Vauxhall activities worldwide, a post he assumed back in November.

Hans Demant, is no longer Managing Director of Adam Opel GmbH and GM Europe Vice President, Engineering. Instead he becomes Vice President, Global Intellectual Property Rights.

The latest moves follow a filing with the U.S. Security and Exchange Commission that revealed GM last week had given Opel another €650 million (~$930 million) in cash by prepaying its loss-making subsidiary for upcoming engineering services.

Critics claim that the only reason GM has the cash for such a transfer of funds is because U.S. and Canadian taxpayers have given it $50 billion. They also note that the European Union central government is vehemently against bailouts of automakers, although it readily pumped billions into banks and other financial institutions last year.

Money and Politics!

The money GM transferred — wherever it came from — is needed to keep Opel afloat while GM continues its quest for European government financing to restructure Opel/Vauxhall. GM has previously said that it will take as much as $4.8 billion to reorganize Opel. European state governments are considering requests for help at a pace that is best described as leisurely.

GM repaid a bridge loan from the German Government of €600 million ($860 million) after GM’s Board refused to go forward with the sale of Opel to Magna and Sberbank back in November. The German Central Government, regional government and the German Metalworkers union all had strongly supported the sale as a way to preserve German jobs.


Opel CEO Search Off. New GM Euro Head Takes Job

Latest org chart sees two GM Europe groups, Opel/Vauxhall, Chevrolet Europe. More consolidating will follow says Reilly.

by on Dec.06, 2009

Many questions, few answers concerning Opel's future. New managment team is coming.

Many questions, few answers concerning Opel's future. New management team is coming.

In an unusual Saturday conference call from Rüsselsheim, Germany, the newly appointed President of General Motors Europe, Nick Reilly, said the Opel CEO search has been abandoned.

Reilly is taking the job, vacant since early November when Karl-Peter Forster left, and adding it to his President of GM Europe role.

General Motors will now have three presidents; one for the U.S., the newly appointed Mark Reuss; one for Asia Pacific and Latin America, the newly appointed Tim Lee; and Reilly as president of GM Europe.

Reilly will be accountable for the results of  both Opel/Vauxhall, while running it, and Chevrolet Europe, which will continue to be managed by Wayne Brannon.

More changes at GM are coming, said Reilly, who will announce a new Opel/Vauxhall management team next week. Reilly refused comment on any individuals. However, he continued to hint, without specifying where, that large cuts are coming.

The latest moves follow the resignation (or more likely firing) earlier in the week of Fritz Henderson as CEO, a post now assumed for an unknown length of time by U.S. Treasury Department appointee as Chairman of the Board,  Ed Whitacre.

In another hastily called press conference last week, Whitacre refused questions and read only a statement about Henderson’s departure. Whitacre promised he would answer questions, soon, about GM’s latest moves, but has since cancelled a press conference scheduled for the upcoming week.

Clearly, loss-making GM is undergoing more wrenching changes, and its strategy is still emerging, if there is any clear strategy at all.  What is certain is that the company is running out of time doing business in old ways  — if it is to return to profitability and have a remote chance of repaying the $60 billion it owes taxpayers.