Opel Board Approves Closure of Bochum Plant in Late 2014

Opel'sOpelGermany, 1863 > present85 models
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board has approved the manager's decisions to stop production at the Bochum factory in late 2014. The decision stems from the Bochum plant's labor union refusing to accept a deal that would have freezed wages and laid off 61% of workers in 2016. This is the first factory closure in Germany since World War II.

Opel is in the first year of its DRIVE!2022 Plan that aims for the company to break even by 2015. It will introduce 23 new models and 13 new powertrains between 2012 and 2016 and plans to expand into new markets. The IG Metall labor union has agreed that there will be no pay increases for Opel workers until 2016. In return, GMGMUnited States of America, 1998 > present8 models
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has financed Opel with €4 billion through 2016.

Opel and VauxhallVauxhallUnited Kingdom, 1857 > present31 models
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have lost a combined $18 billion since 1999. 

GM has a major challenge ahead of it in Europe. As we reported earlier today, the European auto market has declined for the last 18 months, and there is no sign of that stopping. Sales of Opel and Vauxhall vehicles fell 8% in the first quarter, compared to a 9.8% drop in the European market in total.

Opel had originally offered to close production of the Bochum factory in 2016 but keep the components factory and warehouse open. It would have kept the jobs of 1,200 of the 3,100 current employees. Now, Opel plans to close the entire facility 

Source: Automotive News Europe