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GM plans to cut 10,000 Opel jobs GM plans to cut 10,000 Opel jobs
(about 1 hour 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 deal 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 10,000 planned job cuts is broadly similar to the amount Magna proposed.
Unite, the main union at Vauxhall, said it had no immediate comment to make. Unite, the main union at Vauxhall, which employs 5,500 people, said its task was to minimise the number of jobs lost, and to ensure they are voluntary.
Tony Woodley, Unite's general secretary, said it was "inevitable" there would be some job losses at Vauxhall.
He added that it was right that GM should hold onto the two Vauxhall plants in Luton and Ellesmere Port "because this country is one of its strongest and most loyal customers".
Mr Woodley said it was now "absolutely certain" that GM will need repayable loans "from four or five" European Union nations.
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.
UK reliefUK 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.
"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 MapSee 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". While Mr Woodley, himself a former Vauxhall worker, said it was a "fantastic decision", 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.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.