GM Europe reins in European car firms

General Motors has reined in independent-minded European car companies today by concentrating power at its continental headquarters…

General Motors has reined in independent-minded European car companies today by concentrating power at its continental headquarters.

GM said it has promoted Mr Fritz Henderson, who became head of European operations this month, to the new position of chairman of General Motors Europe (GME) and made Mr Carl-Peter Forster, now head of the Adam Opel division, his direct deputy.

Attempting to mould a unified GME identity - binding in the Opel, Vauxhall and Saab divisions - the world's biggest auto maker has removed key functions such as finance, engineering, purchasing, manufacturing, marketing and planning from the brands and moved them to headquarters in Zurich.

It has also created a single pan-European design team that will work for all three divisions.

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GM has not closed plants or cut jobs in the plan to return the European business to profit.

The company has named Mr Hans Demant, vice president of engineering for GME, as new managing director of Opel to succeed Mr Forster, who also becomes chairman of Opel's supervisory board.