Magna Could Fire Over 3,000 Opel Workers

In case it manages to convince both the German government and GM Europe that it deserves to be the new Opel owner, Magna International could fire over 3,045 jobs in Germany. German magazine Wirtschaftswoche wrote that most of the cuts will affect the Bochum assembly plant because the Canadian-Austrian manufacturer plans to move gearbox production overseas.

Additionally, the Ruesselsheim plant will continue to operate on a short-time work schedule for the full next year. Jobs at the Eisenach plant will remain untouched, Financial Times Deutschland wrote according to just-auto.com. Factories in Antwerp, Belgium, and Luton, UK, would be closed. Magna would also lower Christmas bonuses and holiday pays from 2010, the source added.

It appears that all these details are sourced from official Magna documents so this is probably the latest bid submitted by the Canadian-Austrian parts manufacturer. Earlier this day, German Economy Minister demanded both RHJ and Magna International to submit improved bids, but hasn't mentioned which parts of the takeover proposals must be revised.

As you know, the Opel takeover saga is getting more complicated day by day, mainly because the German government and GM Europe can't agree on the two bids. While Magna International is favored by Angela Merkel, RHJ receives GM's support because its offer is easier to implement, as the American manufacturer explained.

Still, a new option suddenly rose for Opel: bankruptcy. Opel's leadership trust suggested that in case RHJ does not become the new owner, bankruptcy would be a better idea than handing over the majority stake to the Canadian parts manufacturer.