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| GM plans to cut 10,000 Opel jobs | GM plans to cut 10,000 Opel jobs |
| (10 minutes later) | |
| General Motors (GM) has confirmed that it plans to cut 10,000 jobs across its European car unit Opel, which includes the Vauxhall brand in the UK. | General Motors (GM) has confirmed that it plans to cut 10,000 jobs across its European car unit Opel, which includes the Vauxhall brand in the UK. |
| The announcement comes a day after GM said it was cancelling its September agreement to sell Opel to Canadian car parts firm Magna. | The announcement comes a day after GM said it was cancelling its September agreement to sell Opel to Canadian car parts firm Magna. |
| The planned 10,000 redundancies is broadly similar to the amount Magna had said it was aiming to cut. | The planned 10,000 redundancies is broadly similar to the amount Magna had said it was aiming to cut. |
| Unite, the main union at Vauxhall, said it had no immediate comment to make. | Unite, the main union at Vauxhall, said it had no immediate comment to make. |
| Opel employs a total of 54,000 workers across Europe, with 25,000 based in Germany. | Opel employs a total of 54,000 workers across Europe, with 25,000 based in Germany. |
| In the UK, its Vauxhall brand employs 5,500 people across two plants in Luton and Ellesmere Port. | In the UK, its Vauxhall brand employs 5,500 people across two plants in Luton and Ellesmere Port. |
| UK relief | UK relief |
| GM's announcement was made by its vice-president John Smith, who did not indicate where the 10,000 cuts are likely to fall. | GM's announcement was made by its vice-president John Smith, who did not indicate where the 10,000 cuts are likely to fall. |
| However, he said GM hoped to be able to present the details to European governments "very soon", with agreement in place with governments and unions between January and March of next year. | However, he said GM hoped to be able to present the details to European governments "very soon", with agreement in place with governments and unions between January and March of next year. |
| The German government had a very strong appetite for the Magna proposal, so I can well imagine and well understand [its reaction] GM vice-president John Smith What next for GM in Europe? | The German government had a very strong appetite for the Magna proposal, so I can well imagine and well understand [its reaction] GM vice-president John Smith What next for GM in Europe? |
| Magna's plans for job cuts at Opel and Vauxhall totalled 10,500, including 4,000 in Germany. | Magna's plans for job cuts at Opel and Vauxhall totalled 10,500, including 4,000 in Germany. |
| At Vauxhall, Unite last month reached a deal with Magna to limit any UK cuts to 600, and all through voluntary redundancies. | At Vauxhall, Unite last month reached a deal with Magna to limit any UK cuts to 600, and all through voluntary redundancies. |
| Unite will now have to seek a fresh agreement with GM. | Unite will now have to seek a fresh agreement with GM. |
| Prior to GM's job cuts announcement, Unite's convenor at Ellesmere Port, John Featherstone, said he believed there would still be some job cuts in the UK under the American group. | Prior to GM's job cuts announcement, Unite's convenor at Ellesmere Port, John Featherstone, said he believed there would still be some job cuts in the UK under the American group. |
| "But I am pleased we will be dealing with GM because we know them and we understand their culture - and they know us," he said. | "But I am pleased we will be dealing with GM because we know them and we understand their culture - and they know us," he said. |
| Business Secretary Lord Mandelson said earlier on Wednesday that he was keen for "very early discussions" with GM over how its plans affect the Vauxhall workers. | Business Secretary Lord Mandelson said earlier on Wednesday that he was keen for "very early discussions" with GM over how its plans affect the Vauxhall workers. |
| 'Ugly face' | 'Ugly face' |
| Earlier GM's decision to hold onto Opel and Vauxhall was welcomed in the UK, but sparked anger in Germany. | Earlier GM's decision to hold onto Opel and Vauxhall was welcomed in the UK, but sparked anger in Germany. |
| See GM production centres in EuropeEnlarge Map | See GM production centres in EuropeEnlarge Map |
| Tony Woodley, the leader of the UK's Unite union and himself a former Vauxhall worker, said it was a "fantastic decision". | Tony Woodley, the leader of the UK's Unite union and himself a former Vauxhall worker, said it was a "fantastic decision". |
| However, unions in Germany said workers would begin walk-outs from Thursday in protest at GM's decision. | However, unions in Germany said workers would begin walk-outs from Thursday in protest at GM's decision. |
| Meanwhile, the German government, which had backed the sale of Opel to Magna, has demanded GM repay a 1.5bn euro ($2.2bn; £1.3bn) loan. | Meanwhile, the German government, which had backed the sale of Opel to Magna, has demanded GM repay a 1.5bn euro ($2.2bn; £1.3bn) loan. |
| Mr Smith said GM would repay the full amount "if we're requested to do so" by Germany, saying GM had already paid back some of the funds. | |
| German leaders and labour unions had favoured a sale to Canadian car parts maker Magna, as the best way to save German jobs, as it included a guarantee that no German factory would be closed. | German leaders and labour unions had favoured a sale to Canadian car parts maker Magna, as the best way to save German jobs, as it included a guarantee that no German factory would be closed. |
| Juergen Ruettgers, premier of the German state of North Rhine-Westphalia, where there are fears that the Opel plant in Bochum could now face closure, called GM's decision to hold onto Opel as "the ugly face of turbo-capitalism". | Juergen Ruettgers, premier of the German state of North Rhine-Westphalia, where there are fears that the Opel plant in Bochum could now face closure, called GM's decision to hold onto Opel as "the ugly face of turbo-capitalism". |
| Mr Smith said he acknowledged that "the German government had a very strong appetite for the Magna proposal, so I can well imagine and well understand" the German reaction. | Mr Smith said he acknowledged that "the German government had a very strong appetite for the Magna proposal, so I can well imagine and well understand" the German reaction. |
| "I am hopeful they will find merit in our plan," he said. | "I am hopeful they will find merit in our plan," he said. |