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Head Of GM Europe Steps Down

Tyler Durden's picture




 

While GM can still fool some of the people, most of the time with near record channel stuffing, even as more and more are waking up and suing the company for just this, it seems the same type of strategy of load up dealers with unsellable electric cars has failed miserably in Europe. From WSJ: "General Motors Co. said Karl-Friedrich Stracke has stepped down as president of its loss-making European division, though the restructuring program initiated under his leadership will continue. GM said Mr. Stracke will take another, unnamed position at the U.S. auto maker and that Opel supervisory board chairman Steve Girsky will serve in his place on an interim basis. "Karl Stracke worked tirelessly, under great pressure, to stabilize this business and we look forward to building on his success," GM Chief Executive Dan Akerson said in a statement." The 'success' that as pointed out, has led to a loss-making divions. With successful leaders like these who needs failures?

More:

The departure of Mr. Stracke, who served both as GM Europe president and CEO of the core Opel/Vauxhall brand, comes at a time of mounting pressure for many car makers in Europe to cut production capacity to stem hefty losses.

 

Demand for new vehicles has been shrinking for years in Europe and the raging sovereign-debt crisis hurt consumer confidence further in recent months, making it difficult for many car makers to operate profitably in the region.

 

In June, Opel's board decided on a wide-ranging turnaround plan, but the company shed little light on concrete measures to reduce costs or a time frame for reaching break even. Opel aims, however, to avoid plant closures until 2016.

 

"I am leaving my current position knowing that Opel/Vauxhall has a bright future [...] and I am looking forward to taking on new challenges for GM and Dan Akerson," Mr. Stracke said.

Of course, the ECB is already one step ahead: rumor is that after accepting Spiderman towels as Tier 0 collateral, the ECB is furious contemplating expanding its collateral pool to include 1960 Trabis and GM vehicles of any vintage, in descending order of quality.

 

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Thu, 07/12/2012 - 11:46 | 2610052 bob_dabolina
bob_dabolina's picture

GM should try building a high speed rail.

That should fix it.

Thu, 07/12/2012 - 11:56 | 2610079 machineh
machineh's picture

... then OPEN A BANK to finance it! 

bwa ha ha ha ...

Thu, 07/12/2012 - 11:50 | 2610059 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The counterparty risk of owning stock in a corportion is massive.  Who knows how well the corporation is run behind the scenes?  RIMM?  BP??  GM???

The best investment for this economic paradigm is one without counterparty risk.  That investment is gold and silver.

Buy silver

Thu, 07/12/2012 - 12:02 | 2610095 Unprepared
Unprepared's picture

If we were in a real market economy or in a normal environment, I'd have give you a down arrow.

Thu, 07/12/2012 - 11:50 | 2610061 pods
pods's picture

Heck of a job Strackeeeee!

Thu, 07/12/2012 - 11:51 | 2610064 orangedrinkandchips
orangedrinkandchips's picture

Since the 2011 top, there has been a marked disconnect between US and non-US equity markets. S&P futures (SPX) is down about .7% since the May 2011 top while the World Stock Index ETF (VT) has fallen 13%, Asia 50 ETF (AIA) has dropped 17%, Global Stock Index Ex-US (GWL) declined 22%, BRIC (BIK) is down 27% and EuroStoxx 50 (FEZ) has been crushed by 38.5%

 

Clearly the Fed has been busy and no doubt has the biggest HFT machines that money can buy!

Thu, 07/12/2012 - 15:58 | 2610897 MillionDollarBoner_
MillionDollarBoner_'s picture

"the biggest HFT machines that fiat currency can buy!"...there, fixt it 4 ya ;o)

Thu, 07/12/2012 - 11:52 | 2610065 midgetrannyporn
midgetrannyporn's picture

Here's your nice $10M going away present.

Thu, 07/12/2012 - 11:52 | 2610066 Not Too Important
Thu, 07/12/2012 - 11:54 | 2610072 Temporalist
Temporalist's picture

Well they'd better come up with stats soon or some people in Brussels will be all "No you di'int" on them:

"In addition, Mr Giovannini warned that if Istat stopped putting out statistics the government faced "heavy fines" from Brussels."

Thu, 07/12/2012 - 11:52 | 2610067 FXPortent
FXPortent's picture

Why buy a nice, reliable BMW when you can spend the same price for a GM car?

 

Thu, 07/12/2012 - 11:55 | 2610074 csmith
csmith's picture

Steve Girsky?

Soon we'll have a former MS auto analyst running ALL of GM...that should fix it!

Thu, 07/12/2012 - 12:02 | 2610098 Ookspay
Ookspay's picture

80% of GM US auto sales this year was to the Federal Government.

Thu, 07/12/2012 - 12:34 | 2610203 i-dog
i-dog's picture

Look on the bright side ... you know they'll break down, or catch fire, while they're trying to chase you down!

Thu, 07/12/2012 - 13:42 | 2610469 CTG_Sweden
CTG_Sweden's picture

 

A finance guy as an interim solution. I wouldn´t be surprised if GM now intends to merge Opel and PSA. And if that´s the case I wonder whether they intend to keep a stake in the new PSA/Opel company.

However, I doubt that a merger is enough. They probably have to shut down a few plants in Western Europe and get more low cost production in Eastern Europe.

 

 

 

 

Thu, 07/12/2012 - 16:21 | 2610985 MillionDollarBoner_
MillionDollarBoner_'s picture

a finance guy?

Hell, yeah! Let's finance a dealer network to "buy" them autos; sell 'em back to ourselves at a mark-up and book that as a profit; then leverage/securitise the portfolio into repos with a buy-back option; book that to profits; then loan the customers 110% of the value of each car, 0% down, 4 years free credit, then Libor +/- 15% for ten years; book the discounted income stream to profit; pay ourselves a performance-related bonus...

Works fer me ;o)

Thu, 07/12/2012 - 16:08 | 2610932 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

every business where a finance guy has stepped in has trashed the business for shot term stock gain, most of these poisonous critters come out of GE, what do they make again?, oh yah lobbying worthwhile.

consolidate and flaten. no more growth strategy

Thu, 07/12/2012 - 16:44 | 2611060 MillionDollarBoner_
MillionDollarBoner_'s picture

"The 'success' that as pointed out, has led to a loss-making divions."

But...but...but...without him the loss would have been bigger, so that's a success, right?

Tue, 07/17/2012 - 04:56 | 2623398 angelinaS31
angelinaS31's picture

Such type of dealership in electric cars is very helpful for developing the automotive industry as with such electric cars we can keep our environment eco-friendly, as with the daily increase in the rise of the fuel such future car will be very helpful in the automotive sector.


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