GM is close to name VW’s former executive Karl-Thomas Neumann, Opel’s new CEO.
It s unclear when Karl-Thomas Neumann will be named Opel’s CEO but the company’s supervisory board will meet later this month to discuss this issue. Mr Neumann began his career as head of electronics development at VW and in 2004 left the company to join supply giant Continental AG, where he was named chief executive in 2008. In 2009 he resigned and returned to VW, after clashing with Schaeffler AG, Continental’s large shareholder, over the company’s strategic direction.
At VW he oversaw the company’s operations in China and even if the automaker’s sales in the country have been robust, Mr Neumann fell out of favor with top executives and lost his job earlier this year. Currently Opel is being handled on an interim basis by restructuring expert Thomas Sedran since April. Mr Sedran comes from consulting firm AlixPartnerswhere and he recently helped GM to create an alliance with PSA Peugeot Citroen.
GM said that Opel might see losses between $1.5 billion and $1.8 billion by the end of this year, depending on the restructuring plan aimed for the fourth quarter. Last year Opel lost $747 million in Europe, a region which shows no sign of recovery from the crisis.