Magna set to slash thousands of jobs at Opel and Vauxhall
CARMAKER Opel could slash as many as 10,500 jobs under a massive restructuring by new owner Magna, bosses at the Canadian car parts maker said yesterday.
Co-chief executive for Magna Siegfried Wolf said the cuts could take over a year to carry out.
The news comes days after car giant General Motors (GM) agreed to sell 55 per cent of its GM Europe arm – which makes Vauxhall cars in the UK – to Magna.
Only 2,600 of the jobs cuts are expected to take place in Germany, where the bulk of GM Europe’s staff are based, after Berlin gave substantial financial backing to Magna.
Germany leant €1.5bn (£1.2bn) to keep Opel afloat, and is giving an additional €3bn to Magna.
Between 7,500 and 8,500 jobs are expected to go elsewhere in Europe.
GM employs 54,500 people around Europe, 25,000 of which are in Germany.
Vauxhall employs around 5,000 people in the UK at its Ellesmere Port and Luton factories, and unions have voiced concerns over the future of the plants.
Prime Minister Gordon Brown and business secretary Lord Mandelson are both holding meetings with unions, GM and Magna in a bid to safeguard jobs.