General Motors is forced to make deep job cuts at its Opel/Vauxhall European unit, due to the low 2011 financial results.
“There is increasing frustration with Opel and a feeling that the cuts two years ago did not go nearly deep enough, ” declared an official.”If Opel is going to get fixed, it is going to get fixed now and cuts are going to be deep.”
The European labor officials try to find solutions for GM to be successful again, such as shifting part of the production to South Korea to soften the impact of job cuts in Europe. Unfortunately no deal has been reached between the GM and the European labor officials, so the company is taking into consideration to close the assembly plants in Bochum, Germany (3,100 employees) and from Ellesmere Port, England (2,100 employees).
The company reported $580 million loss in Europe in the first months of 2011, and the losses continued to accelerate throughout the entire year. All in all, GM has lost $14.5 billion in Europe since 1999, and is in a continuous struggle since it emerged from bankruptcy in 2009, when it agreed to sell 55% of Opel to Magna International Inc. and partner Sberbank.