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GM present re-structuring plan for Opel


GM present re-structuring plan for Opel


GM have announced they will be keeping all Opel plants in Germany open. The US car-maker has presented its restructuring plans for the ailing brand. A significant number of jobs will be lost at Opel and its British arm, Vauxhall. It is a worse outcome for employees than the plan Magna would have implemented if GM had not pulled out of selling Opel. CEO of General Motors, Nick Reilly, says the cuts are necessary:

“We do need to restructure. We are going to reduce overall European capacity by around 20 percent and we expect the reduction in head count to be between 9,000 and 9,500 around Europe in total.” There was more good news for Opel’s German operation – with headquarters moving from Zurich. Roland Koch, State Premier of Hesse, where the new headquarters will be located, said: “General Motors has decided that Ruesselsheim will now be the headquarters of Opel and Vauxhall activities in Europe. This is an important signal for the workers.” However, the loss of jobs across Europe is still a worry for the company’s workforce. Opel and Vauxhall have a large number of plant-workers in the UK, Spain and Belgium. Though GM have said none of the German factories will be closed, many are expecting the German workers to bear the brunt of redundancies. It is turning out to be a bad couple of days for General Motors. On Tuesday evening, a deal to sell Saab to Swedish luxury carmaker, Koennigsegg, collapsed.

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