GM could cut up to 10,000 jobs as part of its European restructuring plan
By Andrew C., 27 Aug, 2010. 0 Comments
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As many as 10,000 jobs at General Motors Co. could be lost as part of its European restructuring plan, according to Nick Reilly, interim head of GM's European business. During a news conference in London last Tuesday, Reilly said that details of this plan would likely be finalized within the next three weeks. He explained that the company must lower its production across Europe by 20 to 25 percent as part of the 3.3 billion euros ($4.9 billion) plan.
GM is willing to put up some of its own cash to help fund the restructuring but the company continues to hope that it will receive money from European governments too. The company has about 2 billion euros of its own money to invest in the restructuring. He said that the company needs to get on with the restructuring and that GM cannot afford to let this situation continue. He talked about the existence of a plan but he declined to provide details. GM had recently dropped plans to sell Opel to Magna International Inc. earlier this month, increasing doubt over its operations and straining relationships with unions further. [via reuters]
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