Opel auto chief unveils restructuring plan

11th February 2010, Comments 0 comments

Opel boss Nick Reilly presented on Tuesday a plan for the future of the ailing General Motors unit, with a forecast loss of 8,300 jobs from a total of around 50,000, as expected.

FRANKFURT - Fewer than half the cuts, or 3,911, would take place in Germany, Reilly said, while confirming the shut down of a plant in Antwerp, Belgium with the loss of 2,377 jobs.

Spain would also be affected with the loss of 900 jobs, while more than 500 were slated to be cut in Britain.

"We have no time to waste," Reilly told a news conference in Frankfurt, near Opel's headquarters in Ruesselsheim.

He added that according to a study by independent auditors demanded by German authorities "the plan is financially sound and offers a realistic roadmap to renewed business success."

Opel needs 3.3 billion euros (4.5 billion dollars) to finance its Opel rescue plan, and hopes to get 2.7 billion of it from countries where Opel and its British sister brand Vauxhall have operations.

German Economy Minister Rainer Bruederle and British Business Minister Peter Mandelson said at a joint press conference Friday they would carefully consider any appeal for aid immediately after a business plan had been presented.

GM had initially decided to sell Opel/Vauxhall but changed its mind after its own rescue by the US government, and has decided to turn the European unit around itself.


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