Magna says to cut 10,500 jobs at Opel
AFP - Tuesday, September 15FRANKFURT (AFP) - - The co-head of Canadian auto parts maker Magna said Monday that it planned to cut 10,500 posts at loss-making German car maker Opel once it completes its takeover of the General Motors' unit.
Co-chief executive Siegfried Wolf said his group, which agreed last week to buy a majority stake in Opel from General Motors, was sticking with plans to cut jobs at Opel and its sister brand Vauxhall in Britain.
He confirmed figures reported over the weekend in the German media but said Magna had not modified its terms since late May, when it first signed a memorandum of understanding with GM on the deal.
"Our plans haven't changed since May 31," Wolf told reporters at a press briefing in Frankfurt ahead of the international auto show.
Previously, the figure reported was 10,000 job cuts.
The Opel business, including Vauxhall, employs some 50,000 workers across Europe.
Wolf did not say where the job cuts would be made.
German Economy Minister Karl-Theodor zu Guttenberg told the Sunday newspaper Bild am Sonntag that he believed the cuts were deeper than those estimated earlier by Magna.
GM said last week that it would sell a 55-percent stake in Opel to a consortium comprised of Magna and the state-owned Russian lender Sberbank. GM will retain 35 percent of Opel and employees the rest.
Financial details of the deal were not disclosed and GM noted that key details still had to be agreed upon.
- Dow Jones Newswires contributed to this story -
AFP - Tuesday, September 15FRANKFURT (AFP) - - The co-head of Canadian auto parts maker Magna said Monday that it planned to cut 10,500 posts at loss-making German car maker Opel once it completes its takeover of the General Motors' unit.
Co-chief executive Siegfried Wolf said his group, which agreed last week to buy a majority stake in Opel from General Motors, was sticking with plans to cut jobs at Opel and its sister brand Vauxhall in Britain.
He confirmed figures reported over the weekend in the German media but said Magna had not modified its terms since late May, when it first signed a memorandum of understanding with GM on the deal.
"Our plans haven't changed since May 31," Wolf told reporters at a press briefing in Frankfurt ahead of the international auto show.
Previously, the figure reported was 10,000 job cuts.
The Opel business, including Vauxhall, employs some 50,000 workers across Europe.
Wolf did not say where the job cuts would be made.
German Economy Minister Karl-Theodor zu Guttenberg told the Sunday newspaper Bild am Sonntag that he believed the cuts were deeper than those estimated earlier by Magna.
GM said last week that it would sell a 55-percent stake in Opel to a consortium comprised of Magna and the state-owned Russian lender Sberbank. GM will retain 35 percent of Opel and employees the rest.
Financial details of the deal were not disclosed and GM noted that key details still had to be agreed upon.
- Dow Jones Newswires contributed to this story -
