Canadian Auto Company Magna to cut 10,500 jobs; 4,500 in Germany
Now reports says that Magna International Inc. plans to cut 10,500 jobs at General Motors Co.’s Opel unit.
German news paper Frankfurter Allgemeine reports that the job cutting will be 'voluntary of nature'. That means they expect no forced layoffs.
Canadian auto parts maker Magna and its Russian finance partner plan to cut 10,500 jobs in Europe when taking over car makers Opel and Vauxhall, 4,500 of them in Germany, a German newspaper reported.
The Frankfurter Allgemeine Sonntagszeitung (FAS), in its weekly edition to appear Sunday, reported the number of anticipated job cuts citing a spokesman for Magna.
The weekly Der Spiegel put the job losses at Opel in Germany at 4,100, with the buyers of a controlling stake in General Motors' European units planning "to eliminate 3,000 jobs in production and 1,100 in administration", Der Spiegel reported without citing any sources, in its edition to appear Monday.
The talks about the Government aid is not yet completed. However in the wake of the proposed job cut, no one is sure that whether EU will provide the necessary approval for this aid or how much the aid would be.
Germany has promised 4.5 billion euros ($6.6 billion) in state guarantees, to which other European governments were expected to contribute. But as the dust settled on the Opel deal, it was still unclear when and how much they would give.
"We'll make a decision (on the timing) once we have further details," a spokesman for Spain's industry ministry said.
Any aid will require approval by the European Union.