Major Progress for Opel/Vauxhall’s Viability Plan

2010-03-12

Rüsselsheim. Opel/Vauxhall today made significant progress in the implementation of its viability plan.

In Spain, local management and unions reached an agreement to implement the planned restructuring measures at the manufacturing plant in Zaragoza. The agreement, which still needs to be ratified, calls for a socially responsible reduction of 900 jobs in Spain.

In addition, this afternoon, the UK government announced a €300 million loan guarantee to help secure Opel/Vauxhall’s operations in Britain and the rest of Europe. The company has been in discussion with the British Government for many months and this very positive conclusion is an important step towards implementing Opel/Vauxhall’s pan-European viability plan. Discussions with governments in other European countries continue, and the company is hopeful to make similar progress.

“Today marks an important step for the future of Opel/Vauxhall,” said Nick Reilly, Opel/Vauxhall CEO. “This shows significant progress in our efforts to secure loan guarantees from European governments and to get support from our employee representatives. We very much appreciate the support of Lord Mandelson and the British Government which is a vote of confidence in our company. I’m also grateful for the Spanish government’s role in moderating the discussions between management and unions resulting in the important agreement reached early this morning.”