Opel is among Europe's weakest makers as GM tries to make Chevrolet its global small car brand.
General Motors’ loss-making Opel Division is shutting production lines in Zaragoza, Spain, and Eisenach, Germany today 21 March and tomorrow because of shortages of an electronic component from an unnamed Japanese supplier.
GM also put in place a German engineer to run troubled Opel/Vauxhall as CEO, Karl-Friedrich Stracke, effective on 1 April. Stracke, 55, is a 32-year veteran of GM who has led global vehicle engineering for the last year and a half.
There is a certain amount of friction between Opel and Chevrolet factions inside GM as both brands compete for the same customers, and Chevrolet increasingly turns to GM’s Korean subsidiary Daewoo as a source for small cars that Opel once designed exclusively. Opel’s future is clearly as a regional European brand in a market where it is struggling.
Stracke succeeds Nick Reilly, who continues as the head of GM’s European operations and will be nominated to chair the Opel Supervisory Board. In his capacity as CEO of Opel/Vauxhall, Stracke will report to Reilly. Walter Borst, president and CEO GM Asset Management and current Supervisory Board Chairman, will continue as a regular member of the Supervisory Board.
In addition to serving on the Opel Supervisory Board, Reilly will also oversee Chevrolet and Cadillac in Europe. Reilly joined GM Europe in November 2009 after running GM’s International Operations based in China for three years.
Stracke will be replaced in the global engineering role by John Calabrese, executive director Global Vehicle Engineering. Calabrese joined GM in 1981.
The latest auto industry setback from the Japanese earthquake and tsunami and nuclear disaster comes as GM in the U.S. has told employees via e-mail to stop all unnecessary spending while it assesses the negative implications of parts shortages on GM’s operations.
The news comes as Japanese makers say they intend to resume production at some plants in Japan this week.
