General Motors’ plans to sell off its money-losing Opel unit is running into political and union opposition in both Germany and Great Britain.
GM is proposing to sell Opel to the French-based PSA Group, which it is assumed will move to reduce costs, shed some of the excess capacity and move to consolidate product lines. Excess capacity has long been identified as a major problem in the European auto industry but governments and unions throughout Europe have made it extremely difficult to close plants
Germany’s federal government and influential unions, which are already facing the threat of major job losses at Volkswagen in the wake of the diesel scandal, have moved quickly to criticize the proposed GM-PSA deal. (more…)