Spanish Workers to "Decide" Opel State Aid

General Motors Europe is still negotiating with European governments hosting Opel factories the amount of state loans to be offered for helping the brand's restructuring. But Spanish industry minister Miguel Sebastian says the country's financial backing for GM's Opel plans depends on their "acceptance" by local employees, just-auto.com reports.

Opel wants to eliminate 900 jobs at the Zaragoza production facility, which is going to remain the main plant for the GSV platform beyond 2013. However, the Spanish factory will share volumes with Eisenach, GM announced it its Opel restructuring plan earlier this month.

GM Europe is aiming to invest up to 11 billion Euros by 2014 and to introduce several new models, including an extended-range electric vehicle in addition to the Ampera.

“Opel/Vauxhall has a clear vision: to be a leading European manufacturer of high quality, desirable automotive products, based on German engineering, driven by a united team of professionals and respected around the world. This vision will be realized by offering an exciting and expanded product portfolio based on a strategic push into alternative propulsion technology,” said Opel and Vauxhall CEO Nick Reilly.

However, in order for the plan to work GM needs to cut capacity by 20 percent, with Germany to be the most affected country. In addition, Opel will also close the Antwerp plant in Belgium and relocate the current Astra HB3 to Bochum until the new HP3 is launched.

Negotiations between GM Europe officials and European countries hosting Opel factories are still under way so more details are to be released soon.