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At a glance
Opel’s European plants employ nearly 50,000:
Germany: Four plants, employing about 25,000 workers who last year built 474,557 Opel Astras, Vectras and Corsas, among other models.
•Ruesselsheim, which is also Opel’s headquarters, with a research and development center. Employs 15,600 workers.
•Bochum, which produces the Astra and Zafira models
•Kaiserslautern, an engine plant
•Eisenach, which makes the Corsa
Britain: Two plants with 5,500 workers building cars under the Vauxhall brand.
•Ellesmere Port
•Luton
Belgium
•Antwerp, making Astras, employs about 2,000 workers.
Poland
•Gliwice, where Zafiras and Astras are built. Employs 2,500 workers.
Spain
•Zaragoza, where Corsas, the Meriva mini-van and the Combo delivery van are built. Employs 6,000 workers.
Associated Press
Germany and Russia reacted with anger and Opel workers readied walkouts after General Motors Co. reversed a plan to sell its European subsidiary. Union officials in Britain and Poland, however, welcomed the news.

Reaction mixed on GM axing Opel sale

German officials vow to seek loan payback

– General Motors Co.’s decision to scrap the sale of European subsidiary Opel raised new uncertainty Wednesday over the unit’s future, astonishing politicians in Germany and Russia, and prompting workers to plan walkouts in protest.

The GM board’s unexpected decision to call off the sale to auto parts maker Magna International Inc. and Russian lender Sberbank was a startling end to months of haggling in which Chancellor Angela Merkel and other German leaders had strongly backed the deal.

Now German workers worry GM will make even more cuts to return Opel to profit than Magna would have.

Still, the decision won a cautious welcome from union officials in Britain and Poland, where workers had feared possible cutbacks in a Magna takeover.

GM’s decision handed Merkel’s new center-right coalition government an unwelcome test just a week after taking office. German officials swiftly demanded a restructuring plan from Detroit and vowed to recover by Nov. 30 a $2.2 billion bridge loan granted to keep Opel afloat as a buyer was sought.

“We will get the taxpayers’ money back,” new Economy Minister Rainer Bruederle told reporters. “Dealing with employees in this way eight weeks before Christmas is in no way acceptable,” he added.

John Smith, GM’s chief negotiator for the sale of Opel, said the U.S. automaker would repay the loan “if we’re requested to do so” by Germany.

Merkel, who was flying home from a speech to the U.S. Congress when GM announced its decision, made no public comment Wednesday, but officials made clear their annoyance.

Spokesman Ulrich Wilhelm criticized GM’s “surprising 180 degree turn” and said Merkel may soon speak with President Barack Obama about the issue.

GM is majority-owned by the U.S. government, which said it wasn’t involved in the decision to keep Opel.

Source: GM Europe