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Obama Motors To Cut 10,500 Opel Jobs

From a conveniently memory deficient Associated Press:

Magna: 10,500 Opel jobs in Europe could be cut

By George Frey And Patrick Mcgroarty, Associated Press Writers

FRANKFURT – As many as 10,500 Opel jobs in Europe could be cut, including nearly half of them in Germany, the co-chief executive of Magna International Inc. said Monday — a move likely to draw strident criticism in countries where the automaker has operations.

Speaking to reporters in Frankfurt, Siegfried Wolf said part of his company’s plan for General Motors Co.’s European unit envisions possible job cuts, including 4,500 in Germany, where Adam Opel Gmbh is based. GM agree last week to the sale of its European subsidiary to Magna and Russia’s Sberbank…

Last week, General Motors Co. agreed to sell 55 percent of the unit to Canada’s Magna International and Russian lender Sberbank in a 50-50 split. GM will keep 35 percent, the biggest single stake in Opel, and Opel workers will hold 10 percent.

Opel employs some 49,000 workers in Europe and has plants in Germany, Spain, Britain, Poland and Germany.

Last week, GM said that work at the Antwerp plant could be wound down and that some production at Zaragoza, Spain could be moved to Eisenach, in Germany, drawing criticism of Germany for seemingly negotiating the deal to protect its plans and work force, which numbers 25,000 people.

The deal, announced Thursday, still hinges on conditions that could take weeks or months to work out, such as final agreement for government financing and union support for what could be painful cuts. Chief GM negotiator John Smith indicated then that the Antwerp plant could be wound down.

Belgium has asked the European Union to investigate the deal to make sure German is not violating anti-trust rules.

The German government threw its support for the Magna/Sberbank bid with Chancellor Angela Merkel and the German government giving euro1.5 billion in bridge financing to keep Opel afloat and offering euro4.5 billion more in credit to complete the deal.

Magna had promised to keep Opel’s four plants in Germany — Eisenach, Bochum, Ruesselsheim and Kaiserslautern — open.

Opel has been losing money for years. Its European operations, which include Opel, Vauxhall and Saab, posted an operating loss of about $2 billion in the first quarter of 2009 and a total of nearly $3.7 billion for the years 2006-2008. Analysts say most of the losses can be attributed to Opel and Vauxhall.

GM had sought to unload Opel since it ran into severe financial trouble late last year, seeking state help in November 2008. Industry analysts say the unit has too many employees and too much factory capacity for its sales level and its costs are too high.

We are confused.

What’s this?

Haven’t we always been told that General Motors was having great success with Opel in Europe? So why has Mr. Obama decided to sell 55% of the company to Canada and Russia?

Moreover, haven’t we been told by Mr. Obama and his slaveys in our media that car companies need to make smaller, more fuel efficient cars – which is exactly what Opel makes?

Are we assured that this is what the public demands, and that it is the road to riches for any car company?

So how is it possible that Opel has lost $3.7 billion in just the last two years. And why should it need to scale back its operations to match its low sales levels?

Isn’t Opel the future that Mr. Obama has planned for all of General Motors?

Isn’t this a green shoot?

This article was posted by Steve on Monday, September 14th, 2009. Comments are currently closed.

10 Responses to “Obama Motors To Cut 10,500 Opel Jobs”

  1. Rusty Shackleford says:

    Clearly, they haven’t thrown enough money at it. And whoever is reporting this negative information is a racist.

  2. Liberals Demise says:

    I thought it was a Euro-trash love affair with Barry the Great Apologist.

    I’m sure barry feels their pain!

  3. VMAN says:

    Well how’s the “hope and change” working out for you?

  4. MinnesotaRush says:

    More lunacy and smoke and mirrors from a boy king who couldn’t manage his own finances!

  5. wondersz1 says:

    Now that GM is in financial trouble downsizing might be a wise decision to keep the company alive. The company ran into finance losses a lot earlier, so it might be for bad management that they have now suffered.

  6. TwilightZoned says:

    Isn’t Opel of Germany the heart of GM’s engineeing? If so, wouldn’t it be a mistake to sell it?

    Me thinks I smell a rat.

  7. Rusty Shackleford says:

    Obama says GM survival essential to U.S. economy


    Robert Snell and David Shepardson / The Detroit News

    Warren, Ohio — President Barack Obama told about 2,200 workers at General Motors Co.’s Lordstown Assembly plant that the company’s survival was essential to the nation’s economy.

    “I didn’t run for President to manage auto companies. It wasn’t something on my to-do list,” Obama told workers here as part of a Midwest swing. “But in the midst of a deep recession and financial crisis, the collapse of the auto industry would have caused enormous damage to our economy. So we intervened for one simple and compelling reason: Your survival and the success of our economy depended on it.”

    ——OK, I remember you as saying that you didn’t want to run a car company. Yet here is full admission that you ARE.

    Obama defended the Treasury Department’s $50 billion investment in GM.

    “Our belief was that if GM retooled and reinvented itself for the 21st century, it would be good for American workers, good for American manufacturing and good for America’s economy,” Obama said. “I’m pleased to report that’s exactly what’s begun to happen at this plant and at others. And I’ll tell you what: I will double down on the American people and all of you any day of the week.”

    ——Yes, and make and try to sell cars that less than 10% of the population wants or needs.

    Obama said he wouldn’t rest until all Americans could find a good job. “And I want you to deliver a message to the GM team members who are manning the line and couldn’t join us today: As long as you’ve still got an ounce of fight left in you, I’ll have a ton of fight left in me,” he said.

    The president highlighted the fact that GM is recalling 1,050 workers next month to work at the Detroit automaker’s assembly plant that’s in Warren, Ohio. He signed the hoods of the 1 millionth Chevrolet Cobalt to roll off the assembly lines and a new Chevrolet Cruze that will replace it next year.

    GM president and CEO Fritz Henderson is in attendance, but he is expected to depart immediately after the speech to fly to the Frankfurt Motor Show in Germany.

    This is Obama’s first visit to a U.S. auto plant while in office and since GM and Chrysler Group LLC emerged from bankruptcy earlier this summer. Both automakers received $48 billion to help them restructure after the Bush administration loaned the two automakers $17.4 billion.

    ——And this is a company that the PEOPLE own. Not THE GOVERNMENT…so tea partiers, take note. It’s OURS…not THEIRS.

    • Rusty Shackleford says:

      And the AP’s take on it:

      Obama tells autoworkers his policies help them


      By PHILIP ELLIOTT, Associated Press Writer Philip Elliott, Associated Press Writer – 38 mins ago

      LORDSTOWN, Ohio – President Barack Obama, claiming credit for an uptick on his watch, told autoworkers Tuesday that the economy is on its way back from the brink because of his policies.

      —–OK, Barry, you go with that.

      Pledging to stand firm with autoworkers in northeast Ohio, Obama told factory workers in this town outside Youngstown that his administration had no choice but to intervene and prevent the collapse of automakers. He told General Motors employees that their company has retooled itself and is heading back to a solid business, in part, because of its work force.

      “Your survival and the success of our economy depended on making sure that we got the U.S. auto industry back on its feet,” Obama said, standing near a production line where compact Chevrolet Cobalts are produced.

      He said those small cars were among the most popular under his temporary Cash for Clunkers program that offered drivers up to $4,500 to buy more fuel-efficient automobiles. General Motors has increased production of the compact auto and rehired laid-off workers to restore a second shift here.

      —–Not even in the top ten:

      Here are additional cash-for-clunkers statistics released by the government:
      Top 5 manufacturers of new vehicles purchased:
      1 Toyota 18.9 percent
      2 GM 17.6 percent
      3 Ford 15.4 percent
      4 Honda Motor Co. 12.9 percent
      5 Chrysler 9.1 percent

      Top 10 new vehicles purchased:
      1 Toyota Corolla
      2 Honda Civic
      3 Ford Focus fwd
      4 Toyota Camry
      5 Toyota Prius
      6 Hyundai Elantra
      7 Ford Escape fwd
      8 Honda Fit
      9 Nissan Versa
      10 Honda CR-V 4WD

      “Because of the steps we have taken, this plant is about to shift into high gear,” Obama said. “A hundred and 50 of your co-workers came back to work yesterday. More than a thousand will be coming back to work in less than three weeks as the production of the Cobalt ramps up.”

      So the lying liar who lies continues to lie. It’s not even of the “faux-pas” variety; It’s the complete utterance of untruths and bullshit.

    • proreason says:

      “General Motors ……Your survival and the success of our economy depended on it”


      The Auto Industry is essential to the economy and vital for national defense. And we have a thriving auto industry making cars that Americans want. They are called Toyotas, Nissans and Hondas, and are built right here in America. If there is ever another war for which we need that manufacturing capacity, we have the capacity and expertise to expand it rapidly. A handful of Japanese executives would be no barrier.

      What the Moron means is that the UAW is essential to his own political survival and that he had to illegally pay it off for voting for him..

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