Opel, GM’s loss making German unit, might has no other solution than to cut a third of all jobs in this country.
Earlier this week GM and Opel announced they have decided to cut the working hours of several thousand employees, part of a phased strategy to cut costs. A German newspaper wrote that GM has agreed to let Opel cut 30% of its jobs. The report was denied by Steve Girsky, president at GM Europe.
“There is no such strategy,” he was quoted as saying by the paper. “It is not true that Opel plans such job cuts in Germany.”
In 2011 GM lost $747 million in the European operations, but still it denied rumors that it plans to cut one in every three jobs in Germany. Opel said that the article in the German newspaper puts Opel’s business at risk and damages the brand.
Last week Opel and the labor union agreed that production at the Ruesselsheim and Kaiserslautern plants will be stopped for 10 days beginning September 6th and for other 10 days in October and November. There was not even a hint that the automaker would plan to cut jobs at these two plants or at any other.