General Motors' European Opel Division CEO Resigns -- Update
June 12 2017 - 12:36PM
Dow Jones News
By Eric Sylvers and Mike Colias
General Motors Co.'s European unit Opel appointed a new chief
executive as Peugeot gets set to complete its more than $2 billion
acquisition of the perennially money-losing car maker.
Michael Lohscheller, who had been Opel's chief financial officer
for the past five years, has taken over as the German company's
CEO, Opel said Monday. He replaces Karl-Thomas Neumann, who called
his decision to leave Opel a "personal decision," without giving
further details.
Peugeot earlier this year agreed to buy Opel, betting it can
turn around a company that hasn't posted a profit in almost two
decades. The acquisition, which could close as early as the end of
July, will make Peugeot Europe's No. 2 car maker behind Volkswagen
AG. Revenue at Peugeot, officially known as Groupe PSA, will jump
by a third.
It wasn't immediately clear what role Peugeot CEO Carlos Tavares
played in the change at Opel. A Peugeot spokesman declined to
comment on the relationship between Messrs. Tavares and Neumann.
Mr. Neumann couldn't be reached through an Opel spokesman.
"I know some of you are disappointed, but I hope you can
understand my decision," Mr. Neumann wrote on Twitter. He said he
would take some time before deciding his next move.
Mr. Tavares had been expected to make some changes among Opel's
top managers, though many analysts expected that significant
changes were likely to come only once Peugeot had control of
Opel.
GM installed Mr. Neumann in early 2013 after a turbulent period
of restructuring and executive turnover at Opel. The former CEO of
German parts maker Continental AG put in place a 10-year plan that
included a $5 billion commitment from GM for investment in new
vehicles.
Mr. Neumann, an avid marathon runner, had some success in
reviving the beleaguered brand. He hired a new marketing chief from
the cosmetics industry who oversaw edgy advertising campaigns that
emphasized stylish designs and distinctive features. The vehicles
improved and garnered critical praise too, as Opel gained market
share in key categories like compact cars and crossover SUVs.
Still, Mr. Neumann was unable to deliver on his primary goal of
ending a long run of losses in Europe. GM said it had been on track
to break even on the continent in 2016 before the U.K.'s vote to
leave the European Union created currency-exchange headwinds. GM
reported a loss of $257 million in Europe last year, adding to the
nearly $20 billion in red ink it has spilled there over the last
two decades.
Nick Kostov contributed to this article
Write to Eric Sylvers at eric.sylvers@wsj.com and Mike Colias at
Mike.Colias@wsj.com
(END) Dow Jones Newswires
June 12, 2017 12:21 ET (16:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
General Motors (NYSE:GM)
Historical Stock Chart
From Apr 2024 to May 2024
General Motors (NYSE:GM)
Historical Stock Chart
From May 2023 to May 2024