General Motors will name Adam Opel AG chief Carl-Peter Forster as chief operating officer of its money-losing European operation this month, sources told Dow Jones Newswires for a story Wednesday.
Forster will work closely with Fritz Henderson, GM's former Asia-Pacific head who took over as GM Europe president June 1, to right the unprofitable organization.
GM Europe lost $116 million in the first quarter, and is now on track to post a full-year loss greater than the $100 million it had projected.
Bob Lutz, GM's vice chairman who was interim president of GM Europe before June 1, has laid the groundwork for a reorganization that will cut through GM's various European brands -- including Opel, Vauxhall and Saab -- and centralize control, giving Henderson a much stronger coordinating role.
Forster's will focus on getting the cost side of GM Europe under control. He was the architect of Opel's Project Olympia as a newly appointed chairman in 2001.
The program has made substantial progress, but GM has concluded that it isn't enough.