GM steps up cost-cutting pressure at Opel
January 22, 2013
General Motors Co. is increasing cost-cutting pressure on its money-losing Opel/Vauxhall unit, threatening to close a German factory two years earlier than planned, reports said.
GM Vice Chairman Stephen Girsky is pushing Opel unions to agree to "further considerable" cost cuts, according to a letter he wrote to employees, which was obtained by media outlets today.
"The situation in the entire European (car) market is still catastrophic," Girsky wrote. "It is unrealistic and delusional to think that the European market will recover quickly."
Girsky said car production may be halted at the company's Bochum, Germany, plant, which builds the Zafira Tourer minivan, at the end of 2014 instead of 2016, unless unions agree to further concessions.
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