General Motors has confirmed that it would cut production at two of its largest European car plants according to a report in the Financial Times.
The reports says that the carmaker will reduce European capacity by 350,000 units a year and that output will be reduced at two plants in particular: Antwerp in Belgium and Bochum in Germany. Both plants currently produce in excess of 300,000 units per annum and it is thought likely that they will each be moved towards a figure of 250,000 units per annum.
The move is part of the company’s ‘Olympia’ restructuring plans, designed to reduce costs and bring GM’s European operations to profitability. The Olympia programme aims to cut production capacity in Europe by around 15 percent and return the company to profit in 2003. A few thousand job cuts are envisaged as part of the plan.
Go deeper with GlobalData
The Olympia programme is reportedly facing implementation delays.
|
