General Motors Arrives on Cost Savings Agreement with Opel’s Employees

GM-OpelGeneral Motors Co. arrived at an agreement on cost savings with Adam Opel GmbH employees to help fund a restructuring of the non-profitable division, a person aware of the situation said.

Details of the deal will be declared today by Nick Reilly, Opel’s Chief Executive, and Klaus Franz, the unit’s top Labor Leader, the person said, who preferred to remain anonymous since the agreement has not been exposed to public as yet.

Opel has organized a press meet for 2 p. m. local time at its headquarters in Ruesselsheim near Frankfurt.

The company said that it aims to talk about “significant progress in the turnaround process”.

Stefan Weinmann, a GM Spokesman in Ruesselsheim, was not available for any statement immediately.

Opel’s executives and union leaders have been talking about concessions intended at trimming down labor costs by 265 million Euros ($331 million) a year in an attempt to make Opel’s comeback to profit by 2012.

GM has dedicated 1.9 billion Euros to the reorganization that the Detroit-based automaker anticipates will cost 3.7 billion Euros. GM is asking for loan guarantees from Germany and other nations where it runs for the rest.

A jury counseling the German Government on allocating loans and assistance to organizations in misery will talk about GM’s request on May 25.