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

Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 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