GM’s Opel reorganization plan may slip into January image

General Motors Co. said it’s unlikely to complete a reorganization plan for the Adam Opel GmbH division by the end of this year because further talks are needed with workers and governments.

“It looks like an announcement may slip into January,” Nick Reilly, head of Detroit-based GM’s European operations, said in a blog posting today. “This is not a broken promise. It is a pledge to do something right.”

Reilly had aimed to have Opel’s business plan in place by mid-month and said on Dec. 5 that an agreement was at least 90 percent complete. GM, which is considering the elimination of 8,300 jobs and the closure of a plant in Antwerp, Belgium, has been negotiating with workers to reach 265 million euros ($390 million) a year in concessions on pay and working conditions.

GM is also seeking 2.7 billion euros in reorganization financing from European Union countries where Ruesselsheim, Germany-based Opel and its U.K. sister brand Vauxhall have plants, with the U.S. manufacturer providing another 600 million euros.

Reilly said last week that he has had “positive signals” from European governments.

From:Bloomberg
Image: REUTERS / Sebastien Pirlet