Unions representing workers at GM’s Opel/Vauxhall division in Germany have signed the first of several agreements (31 May) paving the way for substantial cost savings.
Following Opel/Vauxhall’s UK labour organisation Unite’s recent decision to ink a memorandum of understanding, German unions yesterday (31 May) signed a framework agreement that should see some EUR265m (US$321m) of savings generated per year.
Go deeper with GlobalData
The move cements Opel’s restructuring plan although the automaker is still waiting on Germany’s economics ministry to decide whether it will provide substantial loan guarantees.
Several European governments including the UK, have already agreed to large amounts of aid and it is believed the German administration could provide around EUR1bn of support out of a total of EUR1.8bn.
“The framework agreement was still under discussion and was finally signed off yesterday,” a GM spokeswoman told just-auto.
“The next stage is to get the loan guarantee, so we are waiting for the German government to come to a decision.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGermany had been slated to come to a view on any loan guarantees by the end of May, but may have been minded to take further time as it deals with the current turmoil in the Eurozone, which has seen the country contribute massively to underpin the continent’s financial infrastructure.
The German economics ministry was not immediately available for comment.
