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10/12/2004
General Motors Europe to axe 12,000 jobs
General Motors (GM) is following through with plans to axe 12,000 jobs in the loss-making European division as the car giant bids to trim operating costs by £350 million-a-year.
The car and van manufacturer, which employs some 63,000 people in Europe at Opel, Vauxhall and Saab manufacturing plants, said that it hoped to avoid compulsory redundancies.
The majority of the cuts will be made in Germany where 10,000 jobs are to go in the Opel arm. Workers will be offered what GM described as "unprecedented" incentive packages to take redundancy. A deal has been reached with unions in Germany that will see severance packages of up to £138,000 with retraining and other sweeteners. Agreements are currently being negotiated in the other countries affected by the restructuring plan.
The remaining 2,000 cuts will be made at Ellsmere Port in the UK and at plants in Spain Belgium and Sweden.
GM had announced the restructuring plans in October, but had delayed their implementation in the hope that market conditions would improve in line with forecasts. However, GM Europe President Carl-Peter Forster said that the company had to face up to the realities of the market, which he said was the "imperative".
GM has made previous efforts to restructure a cash-strapped European operation that has not made a profit since 1999 and has accrued debts of $3 billion.
None of the 11 European plants will close, but cuts will be made in managerial and administration posts.
It is thought that GM will have to set aside in the region of £1 billion to finance the restructuring plan.
(SP/MB)
The car and van manufacturer, which employs some 63,000 people in Europe at Opel, Vauxhall and Saab manufacturing plants, said that it hoped to avoid compulsory redundancies.
The majority of the cuts will be made in Germany where 10,000 jobs are to go in the Opel arm. Workers will be offered what GM described as "unprecedented" incentive packages to take redundancy. A deal has been reached with unions in Germany that will see severance packages of up to £138,000 with retraining and other sweeteners. Agreements are currently being negotiated in the other countries affected by the restructuring plan.
The remaining 2,000 cuts will be made at Ellsmere Port in the UK and at plants in Spain Belgium and Sweden.
GM had announced the restructuring plans in October, but had delayed their implementation in the hope that market conditions would improve in line with forecasts. However, GM Europe President Carl-Peter Forster said that the company had to face up to the realities of the market, which he said was the "imperative".
GM has made previous efforts to restructure a cash-strapped European operation that has not made a profit since 1999 and has accrued debts of $3 billion.
None of the 11 European plants will close, but cuts will be made in managerial and administration posts.
It is thought that GM will have to set aside in the region of £1 billion to finance the restructuring plan.
(SP/MB)
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