General Motors is planning a restructuring of its European vehicle making operations this week to shift power from its underperforming Opel, Vauxhall and Saab divisions to its Zurich regional headquarters, writes James Mackintosh.
The restructuring aims to centralise control of manufacturing and product development, and to cut overlapping engineering projects and improve efficiency.
GM Europe lost a higher than expected €100m in the first quarter this year, almost double the loss in the previous year.
The announcement, which may be delayed until next week, will also involve the promotion of Carl-Peter Forster, head of Opel, to chief operating officer of GM Europe. "We want a culture shift," said one source.
GM's Detroit head office has been growing increasingly frustrated at the failure of the European operations to integrate manufacturing and share components between the operations. There has been particular criticism of Saab, which until recently insisted on developing vehicles and manufacturing processes outside the global systems. Opel's refusal to integrate fully with the Global Manufacturing System - which originated from Opel but was further advanced in the US - also caused concern.
The plan was developed by Bob Lutz, group vice-chairman, while he was temporarily running the European business before the arrival at the start of this month of Fritz Henderson. It has caused concern among German labour representatives on Opel's supervisory board.
Lutz cleared out the Opel board a month ago with the exit of directors of marketing and of communications and the retirement of the head of manufacturing.
The insistence on tighter integration of the three brands mirrors GM's global approach. The company is trying to introduce Japanese concepts of lean manufacturing and continuous improvement to its factories through standardised production.
It also wants vehicle designers to use common parts, chosen from a library of components which Lutz likens to a Lego set, in order to reduce development costs.
- Financial Times