However, this is only a necessity as General Motors hopes that Opel will re-become one of the top players of the industry.
In a statement rolled out today, Nick Reilly, Opel and Vauxhall CEO, said that General Motors expects the German brand to return to profitability in the upcoming years if everything goes according to the plan.
“When we finalize our viability plan, it will enhance our competitiveness and enable this company to remain a major force in European car making and sales. And I am confident that GM in Europe – led by Opel and Vauxhall – will be capable of delivering sustainable profits in years to come,” he said.
“Our profit and growth ambitions will not be achieved by cost-cutting alone. We must build on our current success in product quality, reliability and customer satisfaction – reflected by the enthusiastic reception for the new Astra and Insignia models.”
Opel's restructuring plan will be unveiled in mid-December, even if people familiar with the matter have already released several details regarding the plan.
Klaus Franz, Opel labor leader, said that GM will cut around 2,500 jobs at Opel's headquarters in Ruesselsheim, Germany. This includes 1,300 jobs in administration, 862 in production plus 548 in engineering and development center. The Bochum facility will be affected as well, with 1,799 jobs to be eliminated. Additionally, the Eisenach and Kaiserslautern plants in Germany will lose 300 jobs each.