GM overhauls its European operations

General Motors announced a major overhaul of its European operations today, designed to streamline the company by bringing its struggling units Opel, Vauxhall and Saab under a single management structure.

The company said its plans will speed decision-making and increase efficiency, which it hopes will allow it to expand its market position and become more focused on the customer.

“Today we’re asking all of our European employees to recalibrate themselves to a mind-set of working for General Motors overall, instead of an individual brand or country operation,” said Fritz Henderson, who was appointed chairman of General Motors Europe under the new plan.

“While maintaining brand character and integrity is vital, working together as one team is equally critical to future success,” he said in Ruesselsheim, Germany.

GM’s European operations have been losing money since 1999 despite an ambitious restructuring plan.

The management overhaul is being undertaken to cut duplication, and move the finance, engineering, buying, manufacturing, sales and marketing operations of the different units into ”pan-European” departments, the company said.

The company will also create a single design unit, which will “align” work being done on new Opel, Vauxhall and Saab models.

“We need to be better represented in the newer product niches, such as crossover vehicles and SUVs,” said Bob Lutz, GM’s vice chairman of product development.

“This organisational alignment helps us build a global environment that allows the rest of the world to capitalise on the skills and expertise here in Europe, whether that expertise lies in Germany, Sweden, the UK or any other country."