GM (GM) Taps Former Volkswagen Exec to Run Opel AG Out of the Gound

January 31, 2013 12:14 PM EST
General Motors (NYSE: GM) is taking the turnaround of its money-losing Opel unit seriously and wants to have the right leadership in place to ensure that any transitions are well-executed events.

Where better to select from than German auto giant Volkswagen (OTCBB: VLKAY)?

According to reports, GM is appointing Karl-Thomas Neumann as CEO of Opel. Neumann will assume the role on March 1st, said Opel in a statement today.

While at Volkswagen, Neumann was manager of its Chinese operations. He was said to have been passed over in promotions during a recent management shuffle, which may have contributed to the move.

Neumann will assume the role from Thomas Sedran, who is Opel's strategy chief and served as CEO on an interim basis following the departure of Karl-Friedrich Stracke last July.

GM's operations in Europe have lost over $17 billion since 1999, Bloomberg data show.

Analysts saw Neumann succeeding Martin Winterkorn as CEO of Volkswagen. He has a doctorate in electrical engineering from University of Duisburg, studying at University of Dortmund prior.

GM shares are down 0.3 percent Thursday.

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