Restructuring deal at Opel was signed into effect on Monday

Article by Christian A., on August 27, 2010

Last Monday, a restructuring deal for General Motors Co.'s Opel/Vauxhall unit was signed into effect, according to Opel labor leader Klaus Franz.

This deal was made in hopes of saving 265 million euros ($325 million) in annual wage costs through 2014. The master agreement, which was drafted on May 21, was signed by Opel CEO Nick Reilly as well as European union and workforce representatives from countries hosting Opel's major manufacturing plants.

Franz clarified that the signatures signified that no party can withdraw from the contract, removing apprehensions that it would be valid only if Germany agrees to cover 1 billion euros in loan guarantees.

Franz said that if Germany fails to provide state aid, the unions can "no longer be extorted." He also said that all the all the conditions and terms previously agreed had been adopted into a final binding agreement.

Franz revealed that all parties to the deal had signed except for the representatives from the Opel plant in Bochum. But Franz expects that they will sign soon.

Last Monday, there was a meeting in Berlin that was attended by business advisers to Germany's rescue fund to discuss if they will recommend extending loan guarantees to Opel.

So far, no announcement has been given with regards to the result of the talks. GM has asked for state aid from European governments to help fund a 3.7 billion euro turnaround plan at Opel that would lead to a 20% reduction in production and labor capacity.

If you liked the article, share on:

Topics: opel, germany

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019