GM's European light vehicle manufacturing subsidiary, Opel, is facing delays in the implementation of its restructuring program, known as Olympia, according to a report in Handelsblatt.

The report states that it will now take until mid-November until the program is in place, according to sources within the company.

The report adds that the latest delays mean that an extraordinary meeting of the group's supervisory board, called for the purpose of approving the program, will have to be put back from the date of October 17. The meeting is now likely to be held in early November.

The Olympia programme aims to cut production capacity in Europe by around 15 percent and return the company to profit in 2003. A few thousand job cuts are envisaged as part of the plan.

A lack of agreement with the workforce is a significant factor behind delays. Talks between management and the works council were broken off last Tuesday with no sign of an agreement yet.

To view related research reports, please follow the links below:-

Automotive regional report: Western Europe

The world's car manufacturers: A financial and operating review (download)