AFX reports that GM will unveil a new wave of cost cuts for Europe today (Thursday) that centre on operations in Germany to reduce excess production capacity, but stopping short of announcing a plant closure – for now.
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Reports this week have said that Germany will bear the brunt of the approximately 12,000 job losses.
The AFX report, citing GM sources, said that while GM is not expected to close any production facility in the short-term, job cuts at Russelsheim are expected in production as well as research and development. About 5,600 workers in Russelsheim make the Vectra and the Signum, AFX said.
The German media has quoted works council officials as expressing concern that the production of the Astra station wagon in Bochum will be transferred to Belgium or England, while the compact MPV Zafira could be made in Poland’s Gliwice facility. The production of axles is expected to be transferred to eastern Europe, German newspapers have reported.
