GM's First Opel Plan: 10,000 Jobs Cut
This means General Motors will probably look to cut 10,000 jobs, with Forster confirming there will be "massive cuts".
"We had negotiated a good restructuring plan which was ready and on the table," Forster was quoted as saying by Reuters. "Now there is a danger that the sensible distribution of the burden we had agreed will unravel and the process will start all over again. One thing is certain: even with this solution, there will be massive cuts."
As for the restructuring plan, General Motors will submit its first proposal "very soon", John Smith, GM's group vice president of corporate planning and alliances, said.
After months of negotiations with Magna International, who was projected to snatch a 55 percent stake in Opel together with Russian partner Sberbank, General Motors actually decided to keep Opel and is now seeking support from countries hosting factories belonging to the German brand. The UK is one of the first nations to express support for GM, with country officials yesterday claiming that state aid will be surely provided if needed.
"We have noted GM's announcement today and want to work closely with GM to understand their plan for the business and what it means for the UK," a Department for Business spokesman said. "We have always said that if the right long-term, sustainable solution is identified, then the government would be willing to provide funding to this."