British Union Pleased with GM's Decision

UK's Unite union said in a statement that GM's decision to keep Opel is a more advantageous solution for the Vauxhall unit and showed its confidence that governments involved in the matter will provide financial support to support the restructuring process. Yesterday, officials of the British government said the state is willing to grant funds to the US-based manufacturer.

"We expect that all the governments of Europe, including our own, will now be asked to contribute to maintaining the business," Tony Woodley, Unite's joint general secretary, said in a statement. "This is a massively significant development and a far better deal for Britain."

"Of course, restructuring will still be needed, but this is a business which supports well over 20,000 jobs and 400 component companies (in Britain). Our expectation then, is that General Motors will be sticking to its original plan for its EU sites, including the UK."

Under Magna's ownership, Vauxhall could lose around 1,400 jobs as the Canadian - Austrian partsmaker planed to reduce workforce at both plants in the United Kingdom. Some leaked documents hinted that Magna intended to remove more than 10,500 jobs in Europe, with Germany, Belgium and Spain among the countries to be affected by such a decision.

"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."

But General Motors decided after the monthly meeting on November 3 to keep Opel and try reorganize the company using loans granted by countries that are hosting Opel factories.