General Motors on Thursday said it would “wind down” its Opel manufacturing plant in Antwerp, Belgium, “in the course of 2010”.
“Opel will continue to engage in the official information and consultation process with employee representatives regarding the envisaged restructuring,” the automaker said in a statement.
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“The global economic crisis has led to a major downturn in the automotive industry. The western European car market in 2010 is expected to be 1.5m vehicles below 2009 levels and almost 4m below its peak in 2007.
“It is not expected to return anytime soon – if ever – to these peak levels, resulting in significant overcapacity in general and at Opel in particular. To ensure long-term sustainability for the company, Opel needs to reduce capacity by approximately 20%.”
“In view of current capacity utilisation at all European Opel and Vauxhall plants, planned future product portfolio, timing requirements and financial impact, winding down the Antwerp plant would be the most logical approach for the company. If confirmed, production would conclude in the next few months.”
The automaker earlier on Thursday told unions it would close the Belgian factory with the loss of 2,300 jobs, a local union representative told news agency AFP.
“They have announced to us their intention to proceed towards collective redundancy and the closure of the business,” Walter Cnop, of the CSC union’s metalworkers’ branch, said.
Reports late yesterday said union workers were blockading the factory.
Union sources in Germany suggested to just-auto today there would be a Europe-wide reaction to the closure by labour organisations, although it was unclear what this might entail.
GM declined to comment ahead of a press conference scheduled for 11am GMT/noon CET press conference at an airport hotel in Brussels.
“We fully understand the effect this announcement has on the Antwerp employees and their families and we sympathise with them,” said Opel CEO Nick Reilly in the statement.
“Many have been dedicated to the plant over generations and have done an excellent job producing great quality cars. The decision to announce this today, was not taken lightly; instead, it is the unfortunate result of the current business reality. We must make this announcement now so that we can secure a viable future for the entire Opel and Vauxhall operations.”
GM added it expected the full restructuring plan, when completed, “would affect all Opel and Vauxhall production sites and entities through such measures as capacity reductions, job redundancies and labor cost reductions”.
More details would be announced “in due time”.
The automaker had yesterday declined to comment on rising media speculation that the Belgian plant would be closed.
Additional reporting: Simon Warburton
See also: ANALYSIS: Opel Antwerp axe no surprise
