Business

Carmaker Opel to close German Bochum plant in 2014

  • 17 April 2013
  • From the section Business
Opel plant in Bochum
Bochum has been making Opel cars for decades

German carmaker Opel has announced the planned closure of one of its factories by the end of 2014 after a deal with unions fell through.

In February, Opel proposed to keep its Bochum plant in western Germany open until 2016 in exchange for a wage freeze and other cost-cutting measures.

The plan was rejected by the unions, who described it as too vague.

Opel, which trades under the Vauxhall brand in the UK, is a subsidiary of US giant General Motors (GM).

It has been loss-making for more than a decade and has been under pressure to cut costs.

Last week GM pledged to invest 4bn euros ($5.2bn; £3.4bn) in Opel, stemming speculation that the subsidiary could be sold.

The Bochum plant has produced cars for about 50 years.

Opel's plan included ending car production in 2016, but retaining it as a components and logistics centre, saving 1,200 jobs.

The closure would cost more than 3,000 jobs, and be the first closure of a car factory in Germany for decades.

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