Opel CEO Stracke Steps Down

Karl-Friedrich Stracke has abruptly resigned as CEO of General Motors Co.'s Adam Opel unit just two weeks after presenting a new five-year Opel business plan that some investors criticized as slow-paced and vague.

Stracke also quit his job as president of General Motors Europe, a post he held since January. GM Vice Chairman Steve Girsky, chairman of Opel's supervisory board, will serve as acting head of European operations until Stracke's replacement is named.

The Wall Street Journal, citing unidentified sources, reports that GM ousted Stracke in frustration about sluggish progress in turning Opel around. The newspaper says similar impatience prompted the removal of Stracke's predecessor, Nick Reilly, 15 months ago. Opel has lost more than $15 billion (€12.2 billion) since 1999.

Reuters cites anonymous sources who say Stracke's sudden departure caught union leaders including some labor representatives on Opel's supervisory board off guard.

GM says Stracke, a 33-year company veteran, will remain on its staff to handle special projects, reporting to CEO Dan Akerson.

Opel's board approved a new restructuring plan late last month that it says includes higher exports, "massive" product investment and reductions in development, engineering and materials expenses. The company offered no details of the business plan or forecast of when Opel might return to profitability. Akerson hinted the latter could take as long as five years.

Opel announced in mid-June it would shutter its assembly plant in Bochum, Germany but not until after 2016. The company's current labor contract bars job cuts through 2014.

Opel and German labor union IG Metall have set a November deadline for reaching a final agreement on the restructuring. The company reportedly seeks to freeze wages in exchange for a promise not to cut jobs until 2016.