FRANKFURT, June 16 Opel, the European arm of
General Motors, has reached a severance deal with workers
at its Bochum factory in Germany, it said on Monday, a crucial
step in the automaker's restructuring.
Opel management has been negotiating with labour union IG
Metall about the terms of a severance deal after it decided to
close the Bochum factory in April last year, as part of a drive
to bring down costs in Europe.
Opel has reached "binding and reliable" agreements with IG
Metall, the Ruesselsheim-based carmaker said in a statement.
Opel declined to comment on the cost of laying off the staff.
The closure of Bochum is set to cost at least 550 million
euros ($754 million), two sources familiar with the matter told
Reuters in May.
Opel expects its results this year to be burdened by
non-recurring costs such as unfavourable exchange rate moves as
well as the closure of the Bochum factory.
In early June, General Motors said it expected to report a
profit in Europe by mid-decade. Previously, it had only said it
would break even in Europe within that time
(Reporting by Edward Taylor and Jan Schwartz; Editing by Mark