(Updates with more on financing options and other details)
By Sharon Terlep
Of DOW JONES NEWSWIRES
DETROIT -(Dow Jones)- General Motors Chief Executive Fritz Henderson said Thursday he will pick a new management team for the auto maker's Opel/Vuaxhall unit within "weeks or days."
Henderson also told reporters that he is confident GM can secure financing for its EUR3 billion plan to restructure Opel after the GM board dropped plans to sell a majority stake in the business.
The executive, who had backed the sale before the new GM board called for Opel's retention, reiterated that it is prepared to repay emergency loans provided by the German government.
While GM is seeking support from European governments for Opel, Henderson said funding options included reducing the royalties the European unit pays to its parent. It could also use funds provided by the U.S. Treasury, which controls the auto maker following its own bankruptcy restructuring.
He said the board decided to drop the sale to a group led by Canadian parts supplier Magna International Inc. (MGA) after a "very vigorous" discussion.
GM, having decided to retain Opel, will move quickly to begin restructuring its loss-making European division, Henderson said. Among the auto maker's biggest challenges in the region are sharply declining sales in Russia, until recently one of the world's fastest growing markets.
Henderson said Russia sales are expected to finish the year at 1.2 million vehicle sales, down from 3.2 million a year ago.
"The biggest issue is not what is the best strategy, but will the market recover," he said.
Overall, Henderson said, GM's condition is "challenging but stable." The auto maker, which has moved to dramatically slash its U.S. workforce, still has 6,000 to 7,000 workers on layoff. Henderson said the company is unlikely to offer retirement incentives to workers on a mass scale as it has in the past, but may do so on a more limited basis.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@dowjones.com