• May 24th 2010 at 9:31AM
  • 6
To the German government authorities who think General Motors is financially sound enough to pay for Opel's restructuring without loan-guarantee assistance, Opel CEO Nick Reilly says that's not the case. "You need to remember that GM is first of all founded by U.S. taxpayers," Reilly was quoted as saying. "Frankly, GM needs the money it has got."

Not surprisingly, GM has found an ally in Opel's German workers. The General has come to an agreement with the local labor heads who have agreed to forgo €1.26 billion ($1.586B U.S.) in earnings over the next four years. The deal requires that the money 'saved' be committed to developing Opel products, and if it isn't, then GM has to pay it back.

To help everyone keep track of the money and perhaps make financial assistance a more attractive option, Adam Opel AG will become a listed company. Germany hasn't given any indication of when it will declare its position on giving aid, but with 24,000 workers added to the plea and everyone unsure of how long GM can wait before it needs to take other measures, Germany will probably want to close this chapter out rather soon.

[Source: The Associated Press via Google]

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    • 1 Second Ago
      • 5 Years Ago
      Thats about 16k per worker per year. Huge cuts, enough to upset anybody with bills and a family. Unfortunately american unions need to take note- thats what it may take to keep their employers alive.
        • 5 Years Ago
        But the thing is....having Opel listed is a huge "gain" for any of GM's units. Opel will be properly seen as a subsidiary and not just one of GM's brand/divisions. And rightfully so, Opel is capable of designing and manufacturing new vehicles. I can operate as it's own stand-alone auto company and not have to depend on other divisions (input).

        Imagine if Whitacre announced that before GM reissues its IPO, it was going to initiate a major corporate restructuring task & break all of its brands into separate entities essentially making them individually listed corporate organizations. That would be interesting.
      • 5 Years Ago
      That was a major concession, and the union must be applauded for that. Unions are there for worker protection, and apparently that union understands that it's hard to protect jobs when a company disappears (or moves).
      • 5 Years Ago
      Funded, not founded. Come on, AB. Did you fire an editor or something?

      Thank God Opel's labour force is nothing like America's UAW. These guys actually work WITH GM. UAW could learn a thing or two hundred from them.
        • 5 Years Ago
        Union workers in the US were/are brainwashed into hating the company under which they are paid. I was working for an IT company that GM used for their computer systems, and was advised never to wear a suit down on the floor. The union's people not only would not talk to a 'suit', they would throw things at them. Rather hard to 'bargain' with that mentality.
        • 5 Years Ago
        Amusing to read americans warped ideas about unions, gasping at the simple prospect of working WITH the employer!