General Motors wants significant progress this week on the sale of Opel/Vauxhall to Magna International or it might reconsider its options, according to numerous UK media reports over the weekend.
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Options if the deal falls through would include keeping its European operations or selling them to another buyer.
But Opel labour leader Klaus Franz told Reuters on Monday the deal would be concluded this week.
“We are on the home stretch but there a few more points to clear up,” Franz said, adding talks about the situation in Britain had made good progress.
“I expect the contract to be signed in the course of this week.”
His optimism comes despite GM’s concerns that European governments are divided over funding and jobs cuts.
Spain and the UK have both indicated they will not financially support Magna’s restructuring plans in their present form, which envisage about 11,000 job cuts.
Opel and Vauxhall are currently being kept going by a EUR1.5bn (US$2.2bn) loan from Germany which has also pledged EUR4.5bn to Magna to acquire a 55% stake in Opel.
Other EU governments claim the size of Germany’s financial support is influencing where the jobs cuts are likely to be made with the UK’s business secretary, Lord Mandelson, saying that Magna’s proposals have “shortcomings”.
Up to 1,200 jobs could go in the UK, about 25% of the workforce, compared to 16% of Germany’s 25,000 Opel employees.
Magna wants to cut capacity at the Ellesmere Port Astra plant to 120,000 cars a year from 180,000, despite the factory being widely considered as one of GM’s most efficient in Europe.
Unions and the government are pressing for 150,000 cars a year, which could save a substantial number of jobs.
The company denied reports at the weekend that Magna had already decided not to build its electric hybrid car, the Ampera, at Ellesmere Port.
A Department for Business spokesman said: “We are in discussions with Magna on the long term future of both the Ellesmere Port and Luton plants.
“It is our firm belief that no final decision has been taken on the future of the Ampera.”
