The European subsidiary of General Motors, Opel, has officially requested aid from the German government amounting to 1.5 billion euros to support the restructuring of its business, Opel reported on Tuesday.
Opel emphasizes that the German side must decide for itself how much of the burden will be borne by the federal government and how much by the individual German states where the factories are located. General Motors is also seeking assistance from other European countries. GM’s management is requesting a total of 2.7 billion euros in state aid. They expect that most of the funds will be spent on assistance for laid-off employees in search of new jobs or on early retirement programs. Last year, GM abandoned the sale of its majority stake in Opel to a Russian-Canadian consortium that had received a promise of government aid. GM has now reported that it will seek similar support to that which was promised to the Canadian Magna, the leading company in the then consortium.
Meanwhile, Opel’s CEO Nick Reilly presented a restructuring plan on Tuesday, forecasting the elimination of 8,300 out of a total of 50,000 jobs. Just under half, or 3,911 jobs, will be cut in Germany, Reilly said, confirming the closure of the factory in Antwerp, Belgium, which employs 2,377 workers. In Spain, 900 jobs will be eliminated, and in Britain, more than 500 jobs will be cut. “We have no time to waste,” concluded the Opel chief at a press conference in Frankfurt. (H)
