Handelsblatt reports that GM’s European Opel unit has struck a deal with its works council on ‘Project Olympia’ restructuring measures that will reduce GM’s European costs.

The newspaper says that details of the agreement will be announced this Friday, but that under the deal there will be ‘no operational redundancies’.

Negotiations have reportedly focused on redundancy payments and the implementation of this year’s 4% increase in pay for the metal and electronics industry in Germany – at the heart of a recent dispute. Sources have told Handelsblatt that an agreement acceptable to both sides on these contentious issues has finally been reached.

Opel has announced that it plans to reduce its workforce by around 2,500 this year to around 34,500 employees via early retirement, voluntary redundancy and natural wastage.

GM’s ‘Project Olympia’ cost-cutting plan hopes to cut excess capacity in Europe by 500,000 units a year and save two billion euros ($US 1.8 billion). Project Olympia is also intended to return GM’s loss-making European operations to profit.

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