In just nine month, German carmaker Opel will close its Bochum factory, a move that is expected to cost more than 500 million Euros according to experts.
The plant closure will hit about 3,300 Opel workers – and the settlements, and expenses for training and transfer of employees to other jobs are likely to add up to more than half a billion euros.
The company said it might build some components at the factory after 2016, and that its warehouse in Bochum will remain operational.
The shutdown, the first of a car factory in Germany since World War II, is part of Detroit-based GM’s efforts to end losses by 2015 in Europe. The automaker employs (in Bochum) about 3,100 workers in car assembly, 300 in manufacturing auto components, more than 400 in replacement parts and 50 in vehicle transport.
Opel lost 1.9 billion euros in 2012, $844 million last year – and since 1999 more than $18 billion.
In December, the carmaker announced it would withdraw its Chevrolet brand in 2015 from Europe – after the brand failed to gain significant market share. The company hopes more and more European Chevrolet customers will now migrate to Opel.
Dumping Chevrolet from Europe will cost about $1 billion.