Despite analysts’ advice that getting rid of Opel/Vauxhall and retaining Chevrolet as its sole European mass-marker brand is in GM’s best interest, the Detroit carmaker is determined to hold on to the German brand.
Doing so, though, involves restructuring the whole operation and making it more cost-effective to stop bleeding massive amounts of cash.
This has already been announced in the “Drive Opel 2022” 10-year plan that is the subject of GM’s negotiations with the workers’ unions.
German newspaper Frankfurter Allgemeine Zeitung reported yesterday that, according to two board members who wish to remain unnamed, laying off a part of its workforce does not exclude executives.
The two insiders said that GM will cut Opel’s administrative force by 30 percent, which equals to 1,000 jobs. The newspaper added that the cuts in administrative personnel, some of whom earn more than €100,000 (US$130,000) would be made voluntarily and not compulsory.
The automaker neither confirmed nor refuted the report. “We have repeatedly stated that our organizational structure needs to be leaner and more nimble”, said a GM spokesman. “Beyond that, we have nothing further to announce.”
By Andrew Tsaousis
Story References: Reuters
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