GM’s Adam Opel Announces Job Cuts
FRANKFURT, West Germany (AP) _ General Motors Corp.’s West German unit, Adam Opel AG, said Tuesday it plans to cut 5,200 jobs by 1991 as part of a cost-saving program.
The move comes as all of GM’s European operations are under pressure to reduce expenses and bolster the automaker’s profitability on the continent.
Spokesman Erich Kupfer said the job cuts would be made through attrition and would not require firings or plant shutdowns.
But he said a decision had not yet been made on whether to close the company’s part-pressing plant in Russelsheim or an upholstery shop in Bochum.
The number of employees can be cut by 2,700 by 1990, while another 2,500 can be eliminated the following year, the spokesman said.
GM Europe had a 1987 profit of $1.25 billion after a $343.3 million loss in 1986.
The Opel unit has recently gotten a boost from its new Omega model and a restyled Kadett.