GM eyes more cuts in Europe, makes Opel union boss angry

Article by Christian A., on November 11, 2011

General Motors Co. said that in its attempt to put a stop to Opel’s losses in Europe, it may close down the plants and cut jobs. This statement has upset Opel's top union leader Klaus Franz who said that GM's current labor deal in Europe doesn’t allow for plant closures and job cuts through to 2014.

When Chief Financial Officer Dan Ammann unveiled GM's third-quarter results on Wednesday, he said that when it comes to restructuring GM's European operations, nothing was "off the table" and this may include shutting down its plants. According to Opel's chief Karl-Friedrich Stracke, Opel's European restructuring has been successfully completed.

Franz said during a Reuters interview that GM's board of directors has agreed to a contract that prohibits job cuts and factory closures until December 21, 2014. Last Wednesday, GM said that its losses in Europe have fallen from $559 million to $292 million in the third quarter of 2010. GM had anticipated that it will break even in Europe this year before restructuring costs.

The company achieved this level through the first nine months but the declining economic conditions has prompted the company earlier this week to back away from its full-year breakeven goal. Amman informed analysts that GM assumes that the market “won’t improve materially from where we are." He said that this suggests that there’s a need to lower the break-even point even further.

Topics: gm, opel, europe

If you liked the article, share on:

Comments

Recommended

Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 2017
Like it or not, Chevrolet may soon be offering a cheaper Camaro in hopes of competing with Dodge Challenger and Ford Mustang GT. Apart from the less expensive trim, the...
by - August 17, 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