28 February 2013 21:09 [Source: ICIS news]
HOUSTON (ICIS)--General Motors (GM) said Thursday it has reached an agreement with its German labour union, IG Metall, to close an auto assembly plant in Bochum, Germany, by the end of 2016.
Under terms of the deal, GM said it would offer buyouts to 770 of the plant’s more than 3,000 workers this year as it moves from three shifts down to two. The rest of the workers will have job security through 2016, the company said. Some 1,600 employees will be offered jobs in a parts assembly and distribution centre that GM plans to keep open at the site.
On Wednesday, auto parts maker Federal Mogul said it will close three factories in Europe and move production to lower-cost locations in Latin America, eastern Europe and China.
European auto sales sunk to 19-year lows in 2012 and are expected to remain sluggish during the first half of 2013 before improving modestly in the second half of the year.
The American Chemistry Council (ACC) estimates that each automobile contains an average of $3,297 (€2,506) worth of chemicals, such as acrylonitrile-butadiene-styrene (ABS), nylon, polycarbonate (PC) and others.
($1 = €0.76)
Reporting by: Mark Yost
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