German Opel jobs are at risk
THE head of German carmaker Opel, under pressure from parent General Motors to end losses, yesterday refused to promise workers at its plant in Bochum that their jobs would be safeguarded after 2014.
The plant, located in the rust-belt Ruhr region devastated by coal mine closures, is expected to shut after the company chose to build the next generation of its popular Astra compact here in Britain and Poland where wages are cheaper.
Unions say around 45,000 jobs are linked to the factory but a weak economy has hit car sales in Europe, forcing manufacturers to confront high fixed costs and a capacity overhang that GM says equates to 10 plants.
Germany has had few major plant closures in the last four years and shutting Bochum could become an issue in next year’s election.