Vauxhall/Opel CEO Nick Reilly has confirmed a European-wide agreement with the company's employee councils to make savings totalling 265 million euros (£230m) a year
However, Reilly has pledged that the money saved will be invested in new cars to make Vauxhall and Opel stronger.
"We will expand our range with a new convertible, a new car smaller than the Corsa and a new van," said Reilly. "Today's announcement builds on the plan to invest 11 billion euros (£10bn) over the next four years to build high quality, desireable cars, alternate propulsion and expand into new markets. We can now go further than we envisaged."
As part of the deal, Vauxhall/Opel will introduce a new profit-sharing scheme for all employees. Reilly also said that he envisaged the deal meaning there would be no enforced redundancies at the company over the next four years - after it had cut capacity by around 20 per cent and shed 8000 jobs as part of the restructuring plan.
Reilly also confirmed the growing influence of Opel's Rüsselsheim base in Germany. He said that the plant will get full responsibility for the global compact architecture which underpins the Astra, build Astras so that it can stay at full capacity and that the transmission plant there would stay open.
Reilly stressed that talks with European governments for investment were ongoing. Asked specifically about an apparant stalemate in getting aid from the German government, he said: " As far as concerned fulfilled all their requirements. What we are asking for is no more than many other companies have asked for and been given during this time."
Reilly also stressed that GM couldn't fund the restructuring despite returning to profit because of the debt burden it continues to carry in the US.
He added that talks to sell the firm's Antwerp plant, which has been earmarked for closure, were ongoing.
Reilly added that he expected the agreement with the workers to be ratified within the next few days.
"We still have work ahead of us," said Reilly. "Competitors have clearly tried to take advantage of our situation but the message today is that we are ready to fight hard and as one team to succeed. Opel management and employees are united."
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Re: Vauxhall workers agree pay deal
"Reilly also confirmed the growing influence of Opel's Rüsselsheim base in Germany. He said that the plant will get full responsibility for the global compact architecture which underpins the Astra, build Astras so that it can stay at full capacity"
Does this mean that the Astra will continue to be built at Ellesmere Port?!
Re: Vauxhall workers agree pay deal