The Detroit News - Karl Stracke will take over General Motors Co.'s struggling European unit next year, succeeding Nick Reilly, one of the last executives of GM's old guard, who'll retire after 37 years with the firm.
Reilly, 61, held top posts at GM, including head of international operations based in Shanghai, until he was dispatched in late 2009 to restructure GM Europe, which consists primarily of its German carmaker Adam Opel.
Stracke will become president of GM Europe on Jan. 1, retaining his title of CEO of Opel and Vauxhall, as the brand is called in Britain. He will join the GM Executive Operations Committee immediately. Reilly will remain a member of the GM Executive Operations Committee until his retirement in March, GM said in a statement Monday.
"Nick Reilly has answered the call for GM at every turn," said GM Chairman and CEO Dan Ak- erson. "He returned to Europe and successfully led the turnar- ound of our operations there during one of the most tumultuous times in our company's history."
The change at the top of GM Europe came two days before the U.S. automaker is scheduled to announce its third-quarter results, and it wasn't entirely unexpected. Akerson has been pressing for a faster turnaround at GM Europe, which has struggled for years in Europe's cutthroat auto market, and which did not restructure through bankruptcy, as GM's U.S. operations did.
A former GM Russia boss, Wa- rren Browne, said he was surpr- ised by Reilly's decision to retire, four or five years earlier than he'd have expected. "Nick is the most seasoned international executive GM has in an age of global enterprise," said Browne, a consultant at Automotive Compass LLC.
Stracke, 55, returned to his native Germany in March to lead Opel/Vauxhall, accelerating the company's restructuring. He was previously vice president of GM Global Vehicle Engineering, based in Detroit.
"Karl Stracke has tremendous product experience and a proven track record of teamwork across organizations," Akerson said. "His results-driven style will build on the great work he and Nick started to position Opel/Vauxhall and GM Europe for sustainable and profitable growth."
In the first half of the year, GM Europe lost around $300 million before interest and taxes after lo- sing around $400 million in the first quarter and earning around $100 million in the second. Results don't include GM's Russia performance — which falls under international operations — or the Chevrolet business, because most of the Chevrolets cars sold in Europe are produced by GM and its partners in South Korea.
Most automakers are struggling in Europe amid fierce price battles. Ford Motor Co. had a pre-tax third-quarter operating loss of $306 million in Europe; its loss a year ago was $196 million.
