Opel 'will not close European plants'

Opel says it won't axe workers and close European plants, following talks with union representatives.

Last Wednesday, Opel's new chairman Carl-Peter Forster announced details of the restructuring plan to return the company to profit in two years.

Forster said Opel plans to cut 15% of car production capacity in the next two years and that it will probably shed at least 1,000 jobs in its production operations.

He said the programme would cost the maker of Vectra and Corsa cars about £640 million but didn't forecast how much Opel or GM Europe would lose this year.

GM installed Forster in April, charging the former BMW executive with turning around Opel.

The company has been losing market share for years and had been criticised by analysts for its staid image compared to rivals such as Volkswagen and Renault.