FRANKFURT - GENERAL Motors said on Friday the head of its European operations, Carl-Peter Forster, is leaving, three days after the automaker's decision to scrap a planned sale of its Opel unit.

Mr Forster, the son of a German diplomat and a former BMW executive, had been widely expected to run the independent Opel that would have been split from GM in the sale of a controlling Opel stake to a Russian-backed group led by Canadian auto parts company Magna International Inc.

Mr Forster's departure marks the first high-profile exit at Opel since GM's board reversed course and said the automaker would keep the European unit and raise funds to restructure Opel on its own.That decision touched off a storm of protests in Germany, where Magna had been seen as the best chance to preserve jobs.

Nick Reilly, current head of GM's international operations, is set to lead GM's looming reorganisation of Opel, a person briefed on the plan said. Reilly, a Briton, had worked as sales and marketing chief for GM Europe before moving to Asia to run GM operations there. His appointment was seen as a temporary move, the person said.

Meanwhile, Bob Lutz, who agreed to defer retirement earlier this year to head GM's global marketing efforts, will become chairman of the Opel supervisory board, a second person said. Mr Lutz, 77, already sits on the Opel board and will maintain his current management responsibilities, said the person, who asked not to be named because the move has not been announced.

GM said it would brief European governments next week on its plan to restructure Opel and to raise 3 billion euros (S$6.2 billion) from governments in countries with Opel factories. The goal is to cut fixed costs at Opel by 30 per cent - in part by chopping Opel's staff of 50,000 by a fifth - but details are scarce. -- REUTERS