More Shake-Ups As GM Reorganizes Global Manufacturing

General Motors is shaking up its global manufacturing system, naming Tim Lee to head the vast empire of assembly and component plants stretching from Europe to Asia, Africa, and the home market of North America. Diana Tremblay, who had been in charge of global manufacturing, will now move to North America as Vice President of Manufacturing. Lee will continue to serve as head of GM’s vast International Operations.

"Leading a portfolio that includes more than sixty plants in fifteen countries gives Tim a terrific vantage point for this job," said GM Chairman and CEO Dan Akerson in a prepared statement. "His extensive manufacturing experience coupled with this alignment will help deliver great, quality vehicles that keep pace with GM’s global growth."

Lee’s appointment accompanies a consolidation of global manufacturing operations that GM says is designed to improve the flexibility of those sixty plants while also driving down production costs.

Even before entering Chapter 11 bankruptcy protection in 2009 the maker was migrating to a more global operating strategy. Most of its product platforms, for example, are now shared worldwide, with only modest changes made to a European Chevrolet Cruze compared to one sold in the U.S. or a similar product in China. Several analysts said the consolidation of global manufacturing is only the next logical step in that process.

CEO Akerson noted that, with Tremblay's move, she will now be on charge of the maker’s largest market, one that has been undergoing significant changes since emerging from Chapter 11. "Diana’s work toward greater North American manufacturing flexibility has helped drive GM’s recent progress of renewed plant investments and job creation," said Akerson.

The manufacturing realignment comes less than a week after GM announced that Karl-Friedrich Stracke was being replaced as Head of European Operations by Vice Chairman Steve Girsky – who had already been serving as Chairman of the subsidiary’s Supervisory Board.

GM could lose as much as $2 billion in Europe this year, the maker has warned, despite announcing a new turnaround plan that could take several years to fully implement.

Complicating matters is the worsening crisis at its French alliance partner, PSA Peugeot Citroen. The two have been hoping to save $1 billion each through the alliance once it is fully implemented.

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