GM Hired Alix Partners To Speed Up European Turnaround-Source
January 21 2011 - 11:51AM
Dow Jones News
General Motors Co. (GM) hired consulting firm Alix Partners to
speed up the turnaround of its troubled European Opel and Vauxhall
brands, a person familiar with the situation told Dow Jones
Newswires Friday.
The U.S. automaker isn't satisfied with the progress of the
European restructuring, with the German plants in Kaiserslautern
and Bochum facing particularly close scrutiny, the person said.
A spokesman for Opel said the company asked for "external help"
to implement the restructuring plan. He noted that improving the
profitability of fleet sales was in focus, along with streamlining
costs. He declined to comment further.
In 2009, GM skipped the sale of Opel and Vauxhall to Canadian
auto parts maker Magna International Inc. (MGA, MG.T) and decided
to finance the wide-ranging turnaround program itself.
GM Europe posted a $559 million loss in the third quarter last
year and $1.2 billion loss in the January-to-September period,
making it the firm's only money-losing region.
GM Europe chief Nick Reilly told reporters earlier this month
during the North American International Auto Show in Detroit that
the division could reach break-even in 2011, excluding
restructuring costs, if the sales improvement seen towards the end
of last year continues.
According to previous statements, GM Europe is expected to be
profitable again in 2012.
-By Nico Schmidt, Dow Jones Newswires; +49 69 29 725 114;
nico.schmidt@dowjones.com
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