Report: GM Europe to cut more jobs at Opel

Automotive News | March 11, 2008 - 4:00 am EST

FRANKFURT (Reuters) — General Motors Europe plans to slash around 3,000 to 5,600 jobs at its Opel plants across Europe in a drive to improve profitability and streamline production, a German magazine reported on Monday.

GM Europe was in talks with labor representatives to cut jobs through severance packages and outsourcing, auto motor und sport reported, citing unnamed company sources.

GM Europe has a total of 55,651 employees in Europe, according to its Web site. It has already cut its European workforce by around a fifth.

The report quoted Rainer Einenkel, head of the works council at Opel’s Bochum plant in Germany, as saying that labor was examining management’s extensive proposal for job cuts.

According to the report, Opel plants in Belgium, Germany, Spain and Britain would be affected, as well as a Saab site in Sweden.

An Opel spokesman confirmed there were talks with labor representatives but called the reported number of jobs to be cut "very speculative" and said the company was not planning a major restructuring or drastic job cuts.

"It’s about a number of measures to further increase efficiency," the spokesman said, adding that if there should be a need to reduce jobs there would be no forced layoffs.