Germany, workers upset after GM halts Opel sale
Associated Press
Thursday, November 05, 2009

BERLIN --- General Motors Co.'s decision to scrap the sale of European subsidiary Opel raised new uncertainty Wednesday over the unit's future, astonishing politicians in Germany and Russia and prompting workers to plan walkouts in protest.

The GM board's unexpected decision to call off the sale to auto parts maker Magna International Inc. and Russian lender Sberbank was a startling end to months of haggling in which Chancellor Angela Merkel and other German leaders had strongly backed the deal.

Now German workers worry GM will make even more cuts to return Opel to profit than Magna would have.

Still, the decision won a cautious welcome from union officials in Britain and Poland, where workers had feared possible cutbacks in a Magna takeover.

GM's decision handed Ms. Merkel's new center-right coalition government an unwelcome test just a week after taking office. German officials swiftly demanded a restructuring plan from Detroit and vowed to recover by Nov. 30 a $2.2 billion bridge loan granted to keep Opel afloat as a buyer was sought.

"We will get the taxpayers' money back," Economy Minister Rainer Bruederle told reporters. "Dealing with employees in this way eight weeks before Christmas is in no way acceptable."

John Smith, GM's chief negotiator for the sale of Opel, said the U.S. automaker would repay the loan "if we're requested to do so" by Germany.

"We've already begun to repay some of the bridge loan," he told reporters in a conference call.

Opel's chief employee representative, Klaus Franz, said workers would start brief work stoppages today.

From the Thursday, November 05, 2009 edition of the Augusta Chronicle
Reader Comments
Note: Comments are not edited and don't represent the views of The Augusta Chronicle. Please read our full comments policy. To report a post that may be inappropriate, click the icon.
Your comment will be attributed to
YOUR MESSAGE:
You have 1200 characters left.


advertisement

advertisement

TopJobs


Augusta-area Top Jobs
ALL LOCAL! HAUL MATERIAL $15 | hr & Permanent. Load & haul construction material to sites. J# 311 (706)868-6800 Full Time Position. Pro Resources $185 svc fee Well Established South Carolina Company... (more)
Blood Work PHLEBOTOMIST $14-19 | hr + Full Benefits Package. Collect & label blood samples. Work for one of Augusta's Top Hospitals. J# 109 Call us at 868.868.6800 Full Time | Permanent Pos. Pro Resou... (more)
Admin Office Coordinator $15-19 | hr for Full Time Permanent Position with Great Benefits. Call 706.868.6800 for more details on this position. Pro Resources $185 J#197 (more)


© 2009 The Augusta Chronicle|Terms of service|About our ads|Help|Contact us|Subscribe|Local business listings


advertisement
advertisement