Warning over Opel profitability strategy

General Motors’ strategy to return its lossmaking European arm to profitability was likely to fall short and its Opel unit risks exhausting a loan facility granted by the US parent, the head of Europe’s most powerful trade union warned in July 2012.

Berthold Huber, the head of Germany’s IG Metall union, which was closely involved in Opel’s restructuring talks, said that the mid-term business plan approved by Opel’s board in June 2012 'won’t be sufficient' to end the losses.

ESO: Background information: Brussels neutral on carmaker overcapacity / Eurozone carmakers face downsize failure http://www.europeansources.info/record/brussels-neutral-on-carmaker-overcapacity-eurozone-carmakers-face-downsize-failure/

ESO: Background information: GM unveils Europe restructuring plan / GM to shut Bochum plant after 2016 http://www.europeansources.info/record/gm-unveils-europe-restructuring-plan-gm-to-shut-bochum-plant-after-2016/

Deutsche Welle, 13.7.12: Slumping sales broke Opel chief's neck http://www.dw.de/dw/article/0,,16094842,00.html

Spiegel Online International, 10.10.12: The End Might Be Near for Opel http://www.spiegel.de/international/business/german-carmaker-opel-stuggles-to-survive-in-gloomy-market-a-860478.html

---