10,000 jobs in danger at GM units in Europe

7th October 2004, Comments 0 comments

7 October 2004 , FRANKFURT - General Motors officials declined comment Thursday on a newspaper report that some 10,000 jobs at the Opel, Saab and Vauxhall companies were in danger under GM's revamping plans in Europe. The daily Frankfurter Allgemeine Zeitung (FAZ) reported the figure citing "information" it had received while GM's head of European operations, Fritz Henderson, was speeding up the timetable for presenting the plans to try to stop the red ink in Europe. The FAZ said Henderson will be presenti

7 October 2004

FRANKFURT - General Motors officials declined comment Thursday on a newspaper report that some 10,000 jobs at the Opel, Saab and Vauxhall companies were in danger under GM's revamping plans in Europe.

The daily Frankfurter Allgemeine Zeitung (FAZ) reported the figure citing "information" it had received while GM's head of European operations, Fritz Henderson, was speeding up the timetable for presenting the plans to try to stop the red ink in Europe.

The FAZ said Henderson will be presenting the plans at the end of October instead of in November as previously indicated, with the prospective job cuts going deeper than what GM has earlier projected.

Officials at GM and Opel declined to comment on the figure, although an Opel spokesman contradicted the FAZ account about the timetable for the revamping plans.

"Fritz Henderson, the executive responsible for European business, will present the new plans at the end of November," a spokesman at Opel's headquarters in Ruesselsheim said. He declined to discuss the contents of the plans.

In early 2002, GM had announced its aim to slash its European workforce from 70,000 at the time to 53,000 over two years' time. GM's payroll is currently at 62,000, which would mean that if a further 10,000 jobs are slashed, then the workforce cut would go deeper than those originally foreseen, the newspaper noted.

GM, suffering for years from overcapacity at its Opel (Germany), Saab (Sweden) and Vauxhall (Britain) units, is losing hundreds of millions of dollars per year in Europe. In 2003, Opel's operating losses alone came to EUR 384 million. 

In late August, the mass-circulation Bild newspaper reported on what it said was an internal document by Opel management and sent to workers with proposals on cutting costs. Among others aims, the company wants to return employees to the 40-hour week at no extra pay and a number of other rollbacks in benefits, the Bild report said.

DPA

Subject: German news
 

0 Comments To This Article