- Joined
- Mar 12, 2009
- Messages
- 13,160
- Points
- 0
10,000 jobs still at risk despite General Motors decision on Vauxhall and Opel
Wednesday 4 November 2009 21.18 GMT
• GM pulled out of a deal protecting German jobs
• Restructuring still likely due to 30% overcapacity
The decision by General Motors not to go ahead with the Magna deal has angered Germany but is viewed positively by the UK. Photograph: David Jones/PA Wire
General Motors turned the screw on workers at Vauxhall and Opel tonight by giving a clear warning that its decision to keep the European business could still result in 10,000 job cuts.
Earlier trades unions in Britain had expressed delight that GM had turned its back on a move to sell its operations this side of the Atlantic to a consortium led by Magna of Canada which had threatened similar cuts.
John Smith, GM's vice-president for corporate planning, said a new group plan would be put before European governments "very shortly‚" but added that it would be similar to Magna plans involve cutbacks of around 30% and 10,000 job losses.
GM's European business as a whole employs more than 50,000 people, including over 5,000 at British plants in Luton and Ellesmere Port, Merseyside.
GM's surprise announcement on Tuesday that it was pulling out of the deal with Canadian firm Magna had stunned the industry. The German government, which pledged billions of euros to Magna in return for protecting jobs at Opel's four factories in Germany, called GM's decision "totally unacceptable".
Wednesday 4 November 2009 21.18 GMT
• GM pulled out of a deal protecting German jobs
• Restructuring still likely due to 30% overcapacity
The decision by General Motors not to go ahead with the Magna deal has angered Germany but is viewed positively by the UK. Photograph: David Jones/PA Wire
General Motors turned the screw on workers at Vauxhall and Opel tonight by giving a clear warning that its decision to keep the European business could still result in 10,000 job cuts.
Earlier trades unions in Britain had expressed delight that GM had turned its back on a move to sell its operations this side of the Atlantic to a consortium led by Magna of Canada which had threatened similar cuts.
John Smith, GM's vice-president for corporate planning, said a new group plan would be put before European governments "very shortly‚" but added that it would be similar to Magna plans involve cutbacks of around 30% and 10,000 job losses.
GM's European business as a whole employs more than 50,000 people, including over 5,000 at British plants in Luton and Ellesmere Port, Merseyside.
GM's surprise announcement on Tuesday that it was pulling out of the deal with Canadian firm Magna had stunned the industry. The German government, which pledged billions of euros to Magna in return for protecting jobs at Opel's four factories in Germany, called GM's decision "totally unacceptable".
