It's no secret that there is an over capacity in car plants in Europe.
Drastic decisions need to be made. Two cases are in the forefront right
now.
GM Opel: GM want to stop making cars in Bochum Germany by 2016
but continue running it as a parts distribution centre. Obviously this
will affect job numbers. GM wants workers to accept a turn around plan
by February 2012 or they will be forced to shut Bochum by the end of
2014. GM Europe will lose 1.5 billion US$ this year alone.
It seems GM feels isn't getting the speedy co-operation it needs. A
works council and union representatives describe the threat to close
sooner as unacceptable.
My take: GM has decided to finish car production in Bochum. It is
losing too much money. So why so long to close it? It needs to asap. I
normally sympathise with workers losing jobs. However, Germany has
avoided any pain in this regard while factories have closed elsewhere.
Companies have been scared to stand up to Germany. GM are, and its time
to accept that is has to happen even in 'not in our backyard' Germany.
Renault: This is a brand that needs to act to regain a healthy
balance sheet again. It too is getting frustrated trying to get worker
concessions in order to improve competitiveness. It said it wouldn't
close factories if the above was achieved. Renault has now said if those
needed measures cannot be achieved, two plants would be closed.
My take: Another example of a company desperately needing to
become more competitive and feeling a lack of will from Unions. An aide
to Industry Minister said it resembled blackmail. It could also be
called spelling out what will need to be done if this situation is not
resolved soon.
Overall: Desperate times need desperate measures. Buying time is
not an option when there is no sign of improvement for the foreseeable
future. There are difficult times in Europe but a lack of will in
changing things is not an option.
Car Plants Struggle In Europe
It's no secret that there is an over capacity in car plants in Europe.
Drastic decisions need to be made. Two cases are in the forefront right
now.
GM Opel: GM want to stop making cars in Bochum Germany by 2016 but continue running it as a parts distribution centre. Obviously this will affect job numbers. GM wants workers to accept a turn around plan by February 2012 or they will be forced to shut Bochum by the end of 2014. GM Europe will lose 1.5 billion US$ this year alone.
It seems GM feels isn't getting the speedy co-operation it needs. A works council and union representatives describe the threat to close sooner as unacceptable.
My take: GM has decided to finish car production in Bochum. It is losing too much money. So why so long to close it? It needs to asap. I normally sympathise with workers losing jobs. However, Germany has avoided any pain in this regard while factories have closed elsewhere. Companies have been scared to stand up to Germany. GM are, and its time to accept that is has to happen even in 'not in our backyard' Germany.
Renault: This is a brand that needs to act to regain a healthy balance sheet again. It too is getting frustrated trying to get worker concessions in order to improve competitiveness. It said it wouldn't close factories if the above was achieved. Renault has now said if those needed measures cannot be achieved, two plants would be closed.
My take: Another example of a company desperately needing to become more competitive and feeling a lack of will from Unions. An aide to Industry Minister said it resembled blackmail. It could also be called spelling out what will need to be done if this situation is not resolved soon.
Overall: Desperate times need desperate measures. Buying time is not an option when there is no sign of improvement for the foreseeable future. There are difficult times in Europe but a lack of will in changing things is not an option.
GM Opel: GM want to stop making cars in Bochum Germany by 2016 but continue running it as a parts distribution centre. Obviously this will affect job numbers. GM wants workers to accept a turn around plan by February 2012 or they will be forced to shut Bochum by the end of 2014. GM Europe will lose 1.5 billion US$ this year alone.
It seems GM feels isn't getting the speedy co-operation it needs. A works council and union representatives describe the threat to close sooner as unacceptable.
My take: GM has decided to finish car production in Bochum. It is losing too much money. So why so long to close it? It needs to asap. I normally sympathise with workers losing jobs. However, Germany has avoided any pain in this regard while factories have closed elsewhere. Companies have been scared to stand up to Germany. GM are, and its time to accept that is has to happen even in 'not in our backyard' Germany.
Renault: This is a brand that needs to act to regain a healthy balance sheet again. It too is getting frustrated trying to get worker concessions in order to improve competitiveness. It said it wouldn't close factories if the above was achieved. Renault has now said if those needed measures cannot be achieved, two plants would be closed.
My take: Another example of a company desperately needing to become more competitive and feeling a lack of will from Unions. An aide to Industry Minister said it resembled blackmail. It could also be called spelling out what will need to be done if this situation is not resolved soon.
Overall: Desperate times need desperate measures. Buying time is not an option when there is no sign of improvement for the foreseeable future. There are difficult times in Europe but a lack of will in changing things is not an option.
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