Opel is running out of time and out of money. In the second quarter of 2010, the company will be out of cash again, figures the German Handelsblatt. As indicated yesterday, discussions with the unions are going nowhere. Says the Handelsblatt:”Management is preparing for a breakdown of the talks.” Reilly and his crew are trying to find ways how to get Opel going without wage concessions by the unions. But how? (Read More…)

Not surprisingly, the decision to close Antwerp is not sitting too well with Opel’s European Works Council. Their reply: Forget the wage concessions you wanted from us, and which are so critical for Opel’s survival.

Management at Opel wanted employees to contribute €265m annually to the cause. The unions were ready to deal, but wanted shares. Reilly reneged on the shares, which raised union hackles. Now, the offer is off the table. And with it, an essential piece of Opel’s future. (Read More…)

To have a chance of succeeding with its Opel turnaround, GM needs two things: Financial support from the European governments to the tune of €2.6b. And concessions by Opel workers worth €265m a year.  GM itself doesn’t have more than $600m to contribute. Not the best bargaining position.

Chances of government support are getting slimmer as time goes on. Now, Opel labor representatives flat out refuse any support if GM sticks to its turn-around plan for Opel. It is “totally unacceptable” said Opel labor leader Klaus Franz. “A reduction of 9,000 jobs in Europe is out of the question,” Franz said to the Frankfurter Rundschau.
(Read More…)