GM will present a new viability plan for Opel in December

Article by Christian A., on August 27, 2010

As General Motors Co. seeks to reduce production by 20%-25% across Europe, it will be presenting a new viability plan for Opel this December, GM Europe boss Nick Reilly announced.

As part of GM's 3.3 billion euro ($4.9 billion) restructuring plan, it aims to lower its production to slightly less than the capacity of three plants. Reilly asserts that it's too early to determine whether any production sites would be closed.

He claims however that the new scheme would not lead to the transfer of production from Zaragoza to Eisenach in eastern Germany. 

Earlier this month, GM chose not to go through with its plan to sell a majority stake in Opel to a consortium led by Canadian supplier Magna International Inc.

Reilly, who serves as interim head of GM's European business, said that its plan is "very similar" and is no worse than what Magna had proposed.

Reilly, who is tasked with the restructuring of Opel until a replacement for former GM Europe boss Carl-Peter Forster is found, had addressed reporters in Zaragoza, northern Spain, where Opel's largest plant is located.

Reilly said that as part of GM Europe's overhaul, GM could cut up to 10,000 of 50,000 jobs in Europe.

Reilly is set to meet with Spain's Industry Minister, Miguel Sebastian, on Friday to seek state aid to help restructure Opel. It can be recalled that the Spain had criticized Magna's bid, which planned to move a chunk of production to Germany. [via autonews]

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