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German plant beats out Sweden as center for GM's midsize European cars
Published in Saudi Press Agency on 10 - 02 - 2005


General Motors Corp. on Friday
chose its Ruesselsheim, Germany plant to build midsize cars
for Europe over its plant in Sweden as the automaker
strives to cut costs and head off bruising competition.
The automaker had said that only one of its European
plants would produce the next generation of midsize Opels
and Saabs, currently made at both Ruesselsheim and the Saab
plant in Trollhaettan, Sweden.
"In the past months, the company conducted an objective,
intense analysis to determine which of the two plants would
offer the best business model for future production needs
in Europe," GM subsidiary Adam Opel AG, based in
Ruesselsheim, said in a statement.
Last year, GM Europe announced it would cut as many as
12,000 jobs in Europe, where the world's largest automaker
is struggling to end years of losses amid fierce
competition and weak demand. GM said 15 percent of
management jobs in Europe would be eliminated as part of
the program, which aims to produce cost savings of ¤500
million (US$665 million) a year.


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