GM eyes more cuts in Europe, makes Opel union boss angry

Article by Christian Andrei, on November 11, 2011

General Motors Co. said that in its attempt to put a stop to Opel’s losses in Europe, it may close down the plants and cut jobs. This statement has upset Opel's top union leader Klaus Franz who said that GM's current labor deal in Europe doesn’t allow for plant closures and job cuts through to 2014.

When Chief Financial Officer Dan Ammann unveiled GM's third-quarter results on Wednesday, he said that when it comes to restructuring GM's European operations, nothing was "off the table" and this may include shutting down its plants. According to Opel's chief Karl-Friedrich Stracke, Opel's European restructuring has been successfully completed.

Franz said during a Reuters interview that GM's board of directors has agreed to a contract that prohibits job cuts and factory closures until December 21, 2014. Last Wednesday, GM said that its losses in Europe have fallen from $559 million to $292 million in the third quarter of 2010. GM had anticipated that it will break even in Europe this year before restructuring costs.

The company achieved this level through the first nine months but the declining economic conditions has prompted the company earlier this week to back away from its full-year breakeven goal. Amman informed analysts that GM assumes that the market “won’t improve materially from where we are." He said that this suggests that there’s a need to lower the break-even point even further.

Topics: gm, opel, europe

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries