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.

If you liked the article, share on:

Topics: gm, ceo, dan akerson

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 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