Germans to strike over cancelled Opel-Vauxhall deal

Developers and investors today vowed to create about 6,000 jobs in a massive regeneration of The Square at Tallaght.

Meanwhile the German government vowed to recover €1.7bn loaned to GM to finance the sale.

Union leader Klaus Franz said workers would walk out from tomorrow in brief “warning strikes” over GM’s decision to call off a deal with Canadian parts maker Magna International and Russian lender Sberbank.

GM’s decision late yesterday was a surprise end to months of negotiations that saw Germany’s government agree to provide €5bn in financial aid for the Magna deal in September, clearing the way for the sale.

German union leaders and government officials had favoured the sale as the option most likely to preserve jobs in Germany.

German Economy Minister Rainer Bruederle said the money spent to encourage Opel’s sale to the consortium would be recovered.

“We will get back taxpayers’ money,” he said , referring to the bridging loan the government gave Opel last year to keep it afloat until Magna could take it over.

Industrial union IG Metall said workers at Opel’s four German plants would halt work tomorrow, followed by similar moves on Friday at other Opel locations in Europe. Opel has more than 25,000 workers in Germany. GM Europe, which employs 54,000 workers in total including the British Vauxhall plants, also markets brands including Cadillac and Chevrolet in Europe.

IG Metall’s president Berthold Huber said: “This is an unbelievable action. Opel has been brought to this difficult situation, through years of mistakes by GM’s management. Therefore, it’s not likely that GM will be able to produce a viable solution” for Opel.