GERMANY: GM regains Opel control; labour talks this week
Author: just-auto.com editorial team | 1 December 2009
General Motors has regained full control over its Opel unit after paying back a EUR1.5bn (USD2.25bn) emergency loan, including interest, and dissolving a trust that held a 65% stake in the European carmaker.
The German economics ministry said in a statement that its shares in Adam Opel GmbH had been returned to GM.
Germany agreed to provide a six-month emergency loan to Opel in June before GM filed for a pre-packaged bankruptcy. The trust's main job was to monitor Opel's liquidity needs and oversee the sale of a majority stake to a new investor.
GM decided last month to scrap plans to sell Opel to a consortium led by Canadian supplier Magna International and Russia Sberbank.
Separately, Opel has scheduled a staff meeting for Friday at its Ruesselsheim headquarters to provide an update on restructuring talks, the company's works council said. It will be attended by the chief executive of Opel and its British sister brand Vauxhall, Nick Reilly.
Labour representatives oppose planned job cuts announced last week and will not agree to any cost savings as part of GM's plan.
Similar talks were held recently at Opel's Vauxhall Ellesmere Port Astra and Luton van plants. All 2,200 Astra plant jobs will be retained after GM decided to add a third shift from 2011 but workers at the van plant this week learned that 354 posts will be axed as part of 9,000 job cuts Europe-wide. Vauxhall has said it hoped the redundancies would be voluntary.
Sectors: Financial, Vehicle manufacturers
Companies: Opel, GM, Vauxhall, Magna
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