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GM in talks to close one or more factories in Europe
General Motors is in talks with unions to close one or more factories in Europe, a spokesman told AFP Thursday.
GM chief executive Dan Akerson said earlier Thursday that the largest US automaker hoped to reach a "comprehensive" deal with its German union in the coming months.
When asked whether current talks could lead to one or more plant closures, GM spokesman James Cain said "yes, it is still in negotiation."
"Capacity has to be addressed and that is a major focus of the negotiations," he added.
The leading US automaker, which posted Thursday a $400 million loss in Europe in the second quarter, following a $256 million loss in the prior quarter, has spoken for some time about the need to reduce excess capacity at its European subsidiary Opel-Vauxhall.
In late June, Opel's supervisory board approved a plan that involved deep restructuring, huge investment in the product range of the Opel and Vauxhall brands, and a new marketing strategy.
GM has also reached "competitive operating agreements" with unions in England and Poland and "made good progress streamlining decision-making, reducing our material cost and managing our working capital and cash flow," Akerson said.
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