GM Overhaul Would Eliminate Regional Units

CEO Dan Akerson tells The Wall Street Journal he intends to redraw General Motors Co.'s organization chart to replace regional units with global functional chiefs.

The revamp would be GM's biggest organizational overhaul in more than 20 years, the newspaper notes. It says the resulting management structure would more closely resemble those of rivals Ford, Toyota and Volkswagen. Akerson says the transformation could take several years.

He plans to eliminate existing units for North and South America, Europe and International Operations, which includes the Asia-Pacific region. Each has its own managers for functions such as manufacturing, engineering, powertrain and purchasing.

In their place, Akerson aims to install executives who would each have worldwide responsibility for a single function. The company already has global bosses for product development and marketing. Each country would have its own manager in charge of product, pricing and sales.

The reforms would eliminate redundant functions and systems, thus saving time and money and enabling staff cuts, according to Akerson. He hopes the structure also would reduce infighting among regions and make it easier to adopt the best processes worldwide.