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GM CEO: Opel, Vauxhall To Become More Independent Within Co



RUESSELSHEIM, Germany -(Dow Jones)- General Motors Co. Frederick "Fritz" Henderson Tuesday that the company's Opel and Vauxhall brands are set become more independent as the U.S. automaker is preparing for a wide-ranging restructuring of its European operations.

"We need to change the way how we operate in Europe. Just as we need to change the way we need to change the way we operate in the U.S.," Henderson told reporters at Opel's headquarters in Ruesselsheim near Frankfurt, adding that " this doesn't mean they're not part of GM".

He said GM's European operations might gain additional responsibilities, while at the same time becoming "more accountable" for decisions.

Henderson said the number of job cuts could total around 10,000 in Europe, but declined to elaborate on details or possible plant closures as management will first seek further talks with its European labor representatives.

The U.S. automaker confirmed earlier Tuesday that Nick Reilly will take over the helm at GM's European operations, while the external search for a new head of the operations continues.

GM's decision last week to cancel the planned sale of Opel and Vauxhall to Canadian auto-parts maker Magna International Inc. (MGA) and its Russian partner OAO Sberbank triggered the departure of GM Europe's former president Carl-Peter Forster.

Company Web site: www.gm.com

-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512; christoph.rauwald@dowjones.com


  (END) Dow Jones Newswires
  11-10-091125ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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