Jumping Hurdles: GM Europe Reaches Agreement Over Job Cuts, Approves €300 Million Loan Guarantee From UK
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Since GM’s decision to keep Opel, GM’s German arm has gone through similar planning and restructuring as GM did before its bankruptcy. Long term viability and cost cutting have been top priority.
At the end of last week, Opel and Vauxhall announced some of the most significant steps in reducing costs and downsizing since GM’s decision to keep the subsidiaries. Negotiations in Spain concluded with an agreement that is yet to be ratified, but it calls for the elimination of 900 jobs at the Zaragoza (Spain) manufacturing facility. Both management and unions in the area have worked hard to negotiate mutually acceptable terms and this represents a true milestone and turning point for Opel in that region. This news comes after GM’s announcement that it will provide Opel/Vauxhall €1.9 billion to fund the automakers’ restructuring efforts.
What’s more, the government of the United Kingdom has announced its approval of a €300 million loan guarantee for Opel. This comes after months of discussion with the UK and signifies important steps in negations with European governments. Political negotiations for loans with other countries continue, with GM hoping that they will result in similar progress. More as it happens.
We have GM’s full presser after the jump!
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