Head Of GM Europe Steps Down

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?


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.