Celebrated CEO Dan Akerson now pressured to fix European operations

Article by Anita Panait, on June 11, 2012

Directors of General Motors commended Dan Akerson for his sterling performance as the company’s chief executive and they are now urging him to find solutions for the carmaker’s loss-incurring European operations. If Akerson is able to turn around GM’s red-inked European unit, it could be his and the current board’s legacy. However, doing that is easier said than done, as analysts estimate the GM needs to pour in at least $1 billion to restructure just its German unit, Opel, adding that it may take years before GM Europe stops reporting losses. GM director Robert Krebs revealed that although the carmaker needs to close the plant now, it has to wait until 2014 before it can do it.

Krebs added that Akerson helped persuade the board to keep Opel, saying that it was the right decision, according to Autonews. According to Krebs, GM is planning to turn Opel into a “low-enough cost producer” so that the unit remains tough enough to survive in the bad times and be profitable in the good times. According to Krebs, as well as GM directors Neville Isdell and Patricia Russo, Akerson can stay as GM’s CEO as long as he wants.

Akerson gave himself a 'B' grade for his performance as GM’s chief as he steers the company to become the world's largest carmaker in 2011, when it posted a $9.19 billion in profit. There were some disappointments too, as GM’s  shares dropped 33 percent since its initial public offering in November 2010. GM’s directors are also urging Dan Akerson to begin grooming a successor for his post.

Topics: gm, ceo, dan akerson

If you liked the article, share on:

Comments

Recommended

In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries