Support The Moscow Times!

Opel Fears GM?€™s Russia Reorganization

FRANKFURT — Opel workers demanded reassurances Friday that their European brand would not be disadvantaged at the expense of sister brand Chevrolet, after Opel lost responsibility for the Russian region to an Asian arm of General Motors.

GM transferred responsibility for Russia to GM International Operations, based in Shanghai, sparking fears that Opel could lose access to a key growth market, which almost overtook Germany by size in 2008, before collapsing last year.

Opel labor representatives will discuss GM's plans Monday at a meeting of the Opel steering committee.

"General Motors has not given any thought about what negative effects this decision could have on the negotiations of Opel/Vauxhall with the European governments, since Russia plays a decisive role as a market of the future," unions warned in a flyer to staff obtained by Reuters.

Opel workers will "demand a convincing plan for the Russian business of Opel/Vauxhall be presented [that entails] no restrictions to the market and a further expansion of the sales activities," works council members wrote.

A spokesman for Opel said the decision was made to consolidate key sales and manufacturing operations in Russia and the Commonwealth of Independent States under one managerial roof. The measure would not be to the detriment of Opel, he added.

Nonetheless German auto workers union IG Metall fears that German jobs could be threatened down the line and demanded that GM commit to expanding, rather than limiting, Opel's sales in the Russian market.

Jilted Opel suitor Magna, which had been planning a bid with Sberbank, had centered its growth plans for the German carmaker around the Russian market, before GM chose to retain the unit, rather than sell it.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more