GM's Brave Face on European Adversity

24 September 2004

In the midst of production cut-backs, sales slumps and piles of unsold stock, General Motors is putting on a brave face and denying that thousands of European jobs are under threat.

The US car giant is currently reviewing its European operations and recently announced a production cut-back for the fourth quarter [WAMN: 03-Sep-04] following a disappointing 7% sales slump in August.

Over the past four years, GM has lost $2 billion (€1.6bn; £1.1bn) from its European businesses (Opel, Vauxhall and Saab), which are now overseen by one Zurich-based regional chairman after a merger earlier this year.

With eleven factories across the continent employing 63,000 people, it remains to be seen if job losses will form an inevitable part of cost-cutting.

Says a spokeswoman: "there will be no decision before November."

Data sourced from: BBC Online Business News (UK); additional content by WARC staff