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GM's Opel Halts Production in Two Plants

Financial News Network
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August 24, 2012 AT 9:35 PM
In a time of economic uncertainty, many Europeans are cutting down on buying cars, and General Motors is feeling the effects. Now, GM's German unit, Opel, will halt production at two of its plants, cutting the hours of several thousand workers. Last year, GM lost $747 million in Europe. This year, Opel's first-half European deliveries dropped 15 percent. Opel lost an average of 938 euros, or $1,200, on each car it sold in the first half of the year, before tax and interest. In conversation with labor representatives, Opel has agreed to stop production for twenty days between now and the end of the year. This production halt will take place at two of its four factories and by cutting hours, the company can apply to have the government compensate workers for some of their lost wages under a government program