Opel job cuts

Following promises earlier in the day that none of the German Opel plants would be shut down, Nick Reilly, the interim head of General Motors Europe announced Wednesday that up to 5,400 jobs could be lost at Opel's German plants.

Speaking at a press conference at Opel's headquarters in Ruesselsheim, Reilly said, "In terms of the specific numbers... it's approximately 50 percent in Germany. That's the suggested number. As I said, we are going to consult, so I'm not giving a final number," Reilly told reporters.

He then added: "I would change that to 50 to 60 percent."

According to media reports, the estimated redundancies in Germany would number around 2,500 in Ruesselsheim, 1,800 in Bochum, and around 300 each in Eisenach and Kaiserslautern. This would put the total at 4,900, though the final figure could easily be more.

"We will have to make difficult decisions," Reilly said, "We expect employees to contribute, and we hope to get help from governments too."

Works committee protest

The works committee of Opel's Bochum plant called the redundancy figures too high, and announced that it would resist the plans. "That figure has to come down," committee chairman Rainer Einenkel told reporters, "We will take the numbers into account, but we won't accept them."

Opel's general works committee boss Klaus Franz accused GM of not providing enough information and of giving a chaotic picture of the situation. "We feel like we're back in the days of the old GM," he said. According to Franz, GM has so far not agreed to any of the demands of the workers' representatives.

Antwerp plant under threat

Reilly also called the future of General Motors' plant in Antwerp in Belgium "uncertain", announcing he would set up a working group on the factory. The jobs of 2,300 people at the Antwerp plant are under threat.

Reilly held talks on Wednesday with Roland Koch, premier of the state of Hesse, where Opel's Ruesselsheim headquarters is located, as well as with Christine Lieberknecht, the new premier of the neighboring state of Thuringia, which is the home of another Opel plant.

Nick Reilly said GM was aiming to cut Opel's manufacturing capacity by 20 percent; three weeks ago, GM called off plans to sell Opel to parts supplier Magna.

bk/dpa/AP/AFP
Editor: Michael Lawton