Labor leader says costs for Opel’s Bochum plant closure could reach EUR1 billion

Article by Anita Panait, on June 19, 2012

General Motors Co. would have to spend up to EUR1 billion if it decides to shut down its Bochum plant in Germany, labor leader Rainer Einenkel told Westdeutsche Allgemeine Zeitung. Einenkel divulged that Opel, a GM European unit, has set aside around EUR500 million to cover the cost of job cuts if the Bochum site is closed.

The labor leader remarked that the cost could be higher since Opel also has to cover general closure costs and restructuring costs, which would increase the figure to around EUR1 billion. Einenkel noted that the Bochum plant, which employs 3,300 people, had the highest capacity utilization of all Opel sites in Germany and was the only factory in the country making a profit.

Einenkel derided Opel on its plans, describing it as “perverted and sick,” adding that the money associated with the plant’s possible closure could be better spent on model development and further production at the Bochum site.

Opel is currently holding talks with labor unions to shut down Bochum after production of the Zafira minivan ends and in return the company would guarantee jobs at its German plants until 2016.

GM’s decision to close Bochum is part of the pledge made by chief executive Dan Akerson to plug the company’s continuous losses in Europe. GM posted an adjusted operating loss of $256 million in Europe as well as $590 million in write downs for the first quarter.

In protest of the plan to close the Bochum site, around 2,000 workers walked out of an assembly on Saturday, Westdeutsche Allgemeine Zeitung reported.

If you liked the article, share on:

Comments

Recommended

In 2014, Jaguar Land Rover’s Special Vehicle Operations revealed the F-Type Project 7. At that time, it was said to be the fastest accelerating road car carrying a 5.0-liter Supercharged...
by - May 29, 2017
There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 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