FRANKFURT (Commodity Online): Leading car manufacturer, General Motors has decided to close its manufacturing facility at Antwerp in order to reduce its capacity in Europe causing huge job losses.
Considering a sharp fall in the demand in European markets, GM’s Opel is looking to reduce its production capacity by 20%. The recent restructuring of the company would axe about 8,300 jobs across GM's European operations. About 4,000 of those will be only in Germany. Opel is based in Rüsselsheim, a town located in the German state of Hesse.
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However, GM is in discussions with the German government about receiving funding. The car market in Western Europe in 2010 is expected to be 1.5 million vehicles below 2009 levels and nearly 4 million below peak sales in 2007.
The company fears that the sales figures might not return to these peak levels any time soon, resulting in significant overcapacity at Opel. GM plans to stop production at the Antwerp plant in the middle of this year. The decision to close the facility was based on economics. The plant at Antwerp was founded in 1924 and employs 2,600 people, or about 5% of the Opel and Vauxhall European workforce. It currently produces Astra three-door, TwinTop and station-wagon models.
