GM U.S. sales boss LaNeve to leave on Oct. 15

General Motors Co.'s head of U.S. sales, Mark LaNeve, is resigning effective Oct. 15 as the automaker continues to struggle with one of the worst years in U.S. sales history.

“Mark's going to join another company to pursue an interest outside the auto industry,” GM CEO Fritz Henderson said during a conference call on Wednesday.

LaNeve, 50, was appointed vice president of vehicle sales, service and marketing in 2005. In July of this year, GM handed over marketing duties to Vice Chairman Bob Lutz after the automaker emerged from 39 days in Chapter 11 bankruptcy proceedings.

LaNeve's departure comes after GM's U.S. sales plunged 36 percent during the first nine months of 2009 compared with the same period last year. Total industry sales have fallen 27 percent over that period. The annual U.S. sales rate in September--9.51 million vehicles--remained near 27-year lows.

“It's a sad day for the dealer body,” said John Rogin, owner of Rogin Buick in suburban Detroit. “I felt GM had its best chance with him. He was a great leader and inspirational. Hopefully the rest of management will stay intact.”

GM has not appointed a replacement for LaNeve. Henderson said the company will make some changes in its sales division as it replaces LaNeve.

“We are open to bringing in outside talent,” Henderson said. “We are working with Washington to finalize how we pay people and our compensation packages. Prior to bringing in people from the outside, we need to be able to explain how we pay people.”

Henderson said that doesn't mean GM will definitely replace LaNeve from the outside. It just means it is an option.

“We need to move on the sales job, and we'll consider all our options,” Henderson said. “I do think there's a benefit to us bringing in people from the outside in all areas of our company.”

Until GM replaces LaNeve, Jim Bunnell will continue to head GM's dealership consolidation plans. Bunnell is executive director of sales operations.

LaNeve began his career at GM, serving as brand manager for the Pontiac Bonneville and working for Cadillac. He left in 1997 to become vice president of marketing and later CEO of Volvo Cars of North America. He returned in May 2001 as general manager of Cadillac and became GM North America vice president of marketing and advertising in September 2004.

“Mark has contributed significantly to GM in several key positions, including transforming the Cadillac brand and leading the vehicle sales, service and marketing organization during one of the most challenging periods in GM's history,” GM said in a statement.

Chrissie Thompson contributed to this report

By Jamie LaReau- Automotive News