Neumann faces a herculean task. GM Europe has been without a head since July of 2012 when Karl-Friedrich Stracke was removed from his position.
The Opel Supervisory Board today named Karl-Thomas Neumann, 51, chairman of the Management Board of Adam Opel AG, effective March 2013. General Motors also appointed Neumann president of its loss making GM Europe subsidiary and a GM vice president. Neumann will be in charge of a plan to return Europe to breakeven by 2015.
GM Europe has lost more than $17 billion since 1999. GM predicted that its 2012 European shortfall would be as much as $1.8 billion, which is likely optimistic given the ongoing crisis in Europe. The sale of Opel/Vauxhall vehicles dropped 16% at 834,790 units during 2012 in Europe, more than twice the rate of the ongoing industry slump. Sales in the EU are forecast to decline for a sixth straight year in 2013. What is really needed – reducing labor costs at all 11 European final assembly and component plants, as well as white-collar work sites desperately needs to be addressed well before the labor next contract in 2015. (Read AutoInformed on December Car Sales in Western Europe Drop 16%. Off -8% in 2012)
GM Europe has been without a head since July of 2012 when Karl-Friedrich Stracke, 56, was removed from his position to “take on special assignments,” after six months in the job. Stracke was also Chairman of the Management Board of Adam Opel. In his place Steve Girsky, chairman of the Opel Supervisory Board, has been running GM Europe as losses continue to compound.
Neumann joins Opel/Vauxhall from Volkswagen AG, where he held the positions of CEO and vice president of Volkswagen Group China, and was located in Beijing from September 2010 to August 2012. Previously, he held various other management positions within the Volkswagen Group, which he joined in 1999 as head of Group Research and director of Electronic Strategy. In December 2009, Dr. Neumann was appointed the Volkswagen Group’s chief officer for Electric Traction.
Neumann will become a member of GM’s Executive Committee and is expected to play a key role in the global leadership of GM, according to Girsky.
Dr. Neumann studied electrical engineering at the University of Dortmund and University of Duisburg, where he was awarded his doctorate degree. He started his career at the Fraunhofer Society as a research engineer and worked at Motorola Semiconductor as well as an engineer and director of strategy for the automotive industry.
(See also GM Europe President, Opel Head Karl Stracke Ousted over Losses)
