Unions claim that General Motors Co. plans to cut 2,000 additional jobs at its Opel/Vauxhall unit; however, Opel CEO Nick Reilly has come out and has denied this report. Reuters had based its report on documents from GM’s Viability Plan VI, saying that Opel staff will be cut by about 9,960 to a total of 37,700.
Germany will be affected the most, with 5,660 jobs to go. Last Monday, Reilly had a meeting with Opel’s European works council, after which, they issued a statement that said: “According to the plans, headcount will be cut by 2,000 additional persons in comparison to management statements in public.” Reilly emphasized that they don’t plan to go beyond the 8,300 job reductions communicated earlier in conjunction with the restructuring. Reportedly, the additional 2,000 jobs refer to employees who had already signed up to a pre-retirement part-time program in 2006 in Germany. Opel has said it needs to cut jobs as part of its plan to reduce capacity by a fifth to counter slow demand for new cars that could stay weak for years.
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