German workers to strike, government to take back aid in response to GM's decision

[AMERICA 123]

Originally Posted by packardlust

I think the evidence is quite clear that Magna was not GM's first choice, but were forced into it by the German government and unions. The rest of the EU cried foul. Now, today, the Germans don't get Opel, what they wanted, what they thought was rightfully theirs, what they have for years treated as their own, yet. The German government tried to steam roller over the rest of the EU countries. This will be an interesting outcome, regardless of who wins.

Pretty much exactly right or fully so.

If I'm remembering properly, there was what appeared to be a very brief ' prelude to a honeymoon' moment...... and then it was like somebody finished reading the proposed pre nup - and realized......

[PAULSTS1]

The entire auto industry is going where? If Opel doesn't have a reliable buyer, it will close I cannot believe this is what German workers want.

BTW, in more positive news: Honda Motors is reported today that it is committed to opening 100 new dealerships each year in China. At least in China automotive production needed to accommodate its huge population; I don't know about Russia.

[TuffG929]

Originally Posted by Detroit News

Berlin -- Germany's politicians fumed with anger and Opel workers canceled cost concessions and readied walkouts after General Motors Co. abandoned the sale of its European subsidiary to parts maker Magna International and Russian lender Sberbank.

Klaus Franz, Adam Opel GmbH's top employee representative, called it a "black day" and said workers would start brief work stoppages Thursday.

GM's decision Tuesday to abandon the deal was a sharp blow to government and labor officials who supported it as the restructuring option that would save the most jobs in Germany.

The German government had put up a euro1.5 billion ($2.2 million) bridge loan to keep Opel afloat as a buyer was sought, and promised euro4.5 billion in further financing so Magna International Inc. and Sberbank could take a 55 percent stake.

Magna had said it planned to cut about 10,500 of the 50,000 Opel jobs in Europe, with less than half the job cuts, or around 4,500, in Germany. It also said it would keep all four German plants open.

With the deal now off, German workers face the prospect of a restructuring that is less favorable to them...

Detroit News

Autoblog

Automotive News

[mbukukanyau]

I hope they can move some of the production to the US which is cheaper than Germany for sure.

[mbukukanyau]

Angie Merkel ironically was speaking to a joint US house of congress yestaday.

[mbukukanyau]

I was watching the whole saga on C-Span with Opel on my mind and her attempt to wrestle control from us, (as in Americans) and then, my thoughts went to her chest and I am thinking, how could a man ever take a woman politician seriously, she have mammaries for crying out loud, they distract me.

[1931Chevy]

If the union doesnt want to give some concessions the board should definetly consider moving production out of Germany

[rueben44]

Originally Posted by mbukukanyau

I was watching the whole saga on C-Span with Opel on my mind and her attempt to wrestle control from us, (as in Americans) and then, my thoughts went to her chest and I am thinking, how could a man ever take a woman politician seriously, she have mammaries for crying out loud, they distract me.

LOL! you know your wrong for that....LOL!

[stormwatcher]

Originally Posted by boston boy

It's understandable, if you invest 2.2 billion you would think you got something too...

LOL.

Originally Posted by nsap

From what I have been told, that was far from enough. GM wants to shed plants, union workers and white collar workers. GM management and the Board had a non-stop 8 hour meeting yesterday about Opel and came to the conclusion that the Magna plan was not going to make Opel viable because the cuts were not significant enough considering that Opel (as of a couple months ago) is bleeding millions per day.

Expect to see a restructuring of Opel very similar to what we have seen in North America.

Two questions come to mind:

1) Why didn't GM initiate proper cost cutting before?

2) How will GM pay for all of this? A restructuring on the level of what is happening in NA costs many billions.