GM will pay 400 million euros to close Opel’s Antwerp plant

Article by Christian A., on August 27, 2010

By the end of the year, General Motors Co. will be shutting down Opel's assembly plant in Antwerp, Belgium. To cover the termination benefits of the 2,600 workers who worked at this factory, GM expects to incur costs of 400 million euros ($532 million). GM also said that the Flemish government will be leading the search for anj outside investor to sell this plant to.

This deal would have to be entered by the end of the September. GM had been in serious negotiations to sell a majority stake in Opel and UK sister brand Vauxhall, but last November, it chose to keep the brands and to complete a restructuring. In hopes of preserving the workers' jobs, various labor groups as well as the governments of these European countries where an Opel plant is located, have opposed GM's restructuring attempts.

Recently, GM and the plant employees in Antwerp entered a deal related to the termination benefits. GM anticipates that "a significant number" of workers will leave by the end of June in relation to this program. If the workers who decide to remain would later not get hired by a new plant owner, or if an investor is not found, they would get termination benefits as well. GM emerged from a US government-supported bankruptcy in July 2009. [via autonews]

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
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