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Opel Restructures in Russia

General Motors Co.'s Opel unit has installed a new president for its Russian unit and reiterates last month's announcement that its factory in St.

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General Motors Co.'s Opel unit has installed a new president for its Russian unit and reiterates last month's announcement that its factory in St. Petersburg will operate only 16 days in August-October.

Susanna Webber, formerly managing director of purchasing and supply chain for Opel Group, now heads GM Russia. She replaces Andy Dunstan, who has been demoted to the unit's vice president of sales and aftersales.

The St. Petersburg plant makes Chevrolet Cruze and Opel Astra midsize sedans. Opel took control of GM Russia in January from GM International Operations.

Since then Opel sales have plunged 19% to 42,800 units in January-August this year, according to the Moscow-based European Assn. of European Businesses. Chevrolet's volume shrank 27% to 81,700 units over the same period. The overall market declined 12%.

GM says it is "adjusting" its expansion plans in Russia. But it insists it will launch the next-generation Chevrolet Niva small SUV in 2016 as planned.

Gardner Business Media - Strategic Business Solutions