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Opel CEO resigns

Posted on 12 June, 2017

Opel is losing its CEO just two months after being sold by General Motors to the PSA Group. Karl-Thomas Neumann resigned on Monday, and Reuters reports that Volkswagen is rehiring the executive, who formerly worked as a division manager. "The prospects are good that he will move to Volkswagen," said Bankhaus Metzler analyst Juergen Pieper. "He's one of Germany's most distinguished car managers and VW is in great need for excellent people." "Under Neumann's leadership we have made enormous progress in turning around Opel," said GM president Dan Ammann. Neumann, who took the reins in 2013, is credited for turning around Opel's fortunes and restoring its image and reputation. The next CEO will be current finance chief Michael Lohscheller. GM announced the sale of struggling car maker to the PSA Group for $3.3 billion in March 2017. The deal was reached on the condition that Opel reach an ambitious two per cent operating margin in 2020, up to six per cent by 2026. The sale of Opel includes the British-made Vauxhall marque. While Opel currently manufactures the GM-owned Holden Commodore and Astra, the Australian brand was not part of the sale, and  existing supply agreements will continue.