Photo: Opel
General Motor’s restructuring of its European division Opel is taking top priority right now, as the losses mount and GM shareholders are demanding immediate action due to the operation eating into American profits.
German magazine Frankfurter Allgemeine Zeitung (FAZ) recently cited senior labor representative at Opel, who said that the Geman factory at Russelsheim that builds the Astra could be shut down in 2015 when the next generation of the C-segment car arrives.
Production would then be shifted to Ellesmere Port, England and Gliwice, Poland. German workers are much better payed, and it’s hoped that this move would reduce costs significantly.
The restructuring plan has been rumored to include layoffs and cost cuts, though we never though such drastic action would be taken. Yet during the first three months of 2012, Opel and Vauxhall together lost a staggering $256 million.
Should it become official, the news is sure to infuriate Opel workers at Russelsheim assembly, as they have accepted pay cuts in order to help the plant stay open. Some have been working there for a long time, and it would be a crippling blow to the local economy.
According to the German newspaper, the decision will have to be taken by the middle of May.
Production would then be shifted to Ellesmere Port, England and Gliwice, Poland. German workers are much better payed, and it’s hoped that this move would reduce costs significantly.
The restructuring plan has been rumored to include layoffs and cost cuts, though we never though such drastic action would be taken. Yet during the first three months of 2012, Opel and Vauxhall together lost a staggering $256 million.
Should it become official, the news is sure to infuriate Opel workers at Russelsheim assembly, as they have accepted pay cuts in order to help the plant stay open. Some have been working there for a long time, and it would be a crippling blow to the local economy.
According to the German newspaper, the decision will have to be taken by the middle of May.
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