Opel applying to change its legal form back to a stock corporation, keeps promise to unions

Article by Christian Andrei, on November 25, 2010

General Motors Co. said in a statement that its German unit, Opel, kept a promise to its union by applying to change its legal form back to a stock corporation from its current limited liability designation.

The move allows employees share in the Company's future profits and gives Opel management board more work on key decisions regarding its products.

The change satisfies a demand by the union, which agreed to EUR265 million ($353 million) in annual wage saving in part as GM promised to change Opel to an Aktiengesellschaft (AG in German) from a Gesellschaft mit beschraenkter Haftung (GmbH in German).

Vice chairman of the Opel supervisory board and head of the works council, Klaus Franz, says the change of the legal form "is an important milestone for Opel." Nick Reilly, Opel's CEO, says the management board is happy to recognize the accountability it has. Opel workers had a strong say since almost EUR177 million of the yearly wage saving will come from Germany.

The change in Opel's corporate statutes means that staff will share in Company profits, which are expected in 2012, the company says. Opel, which includes the U.K.'s Vauxhall brand, will lose $1.9 billion in 2010, compared with a forecast of $3 billion at the beginning of 2010, Reilly said.

He adds the business has a shot of making money in 2011, excluding reorganization costs, and expects it to return to profit a year later. [via autonews - sub. required]

Topics: opel, germany

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 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