Al Koch stepped in as interim chief financial officer at financial-scandal ridden Kmart Corporation as it entered bankruptcy protection in 2002

General Motors is expected to name Al Koch chief restructuring officer today, casting the veteran turnaround specialist in a starring role in the complex rescue plan for the troubled carmaker.

Koch, who is likely to oversee a winding down and disposal programme for much of GM, has a long history with large companies which have fallen on hard times. Most notably he stepped in as interim chief financial officer at financial-scandal ridden Kmart Corporation as it entered bankruptcy protection in 2002, returning the company to the stockmarket in less than 18 months.

He is also well known in Detroit, having spent 14 years, including seven as managing partner, at Ernst & Young's Detroit office.

67-year-old Koch is currently vice chairman and managing director at turnaround consultancy firm Alix Partners. The firm says it has been engaged in the well-rehearsed issues facing the automotive industry for more than 27 years, working with more than 42 manufacturers and 1,323 suppliers, helping them cut costs, refocus strategy and manage their finances.

The Alix website sets out the stark future facing the industry. "Globally, the industry is undergoing massive upheaval on a scale never seen before. Major players, in the U.S. particularly, are facing bankruptcy, which would profoundly affect the industry, and continue to drag down the national and global economies. Due to social and economic importance, the prospect of large restructurings is a foregone conclusion. The key issue is how the restructurings will alter industry dynamics and influence respective competitive positions."

Alix points to gains made by both Asian and certain European carmakers made at the expense of their US peers in recent times, noting also the arrival on the main stage of Chinese and Indian automotive firms. Koch's likely vigorous attack on high fixed costs is clearly signalled. "Increasing global competitiveness has eroded new vehicle prices, and profoundly influenced the profitability of major players with higher cost structures. The issues facing industry participants are urgent and critical."

Koch will oversee about 60 Alix workers employed by GM. He will report to GM chief executive Frederick Henderson and the automaker's board.