Union representatives from all over Europe met in Antwerp on Tuesday to rally against restructuring measures at General Motors' subsidiary, Opel.

At the meeting Peter Scherrer, the head of the European Metalworkers' Federation, said that the Antwerp plant needs to remain open.

"There will be neither sacrifice nor concession by the unions or by the workers at other plants, if the decision is not overturned," he said.

Opel owner GM announced last Thursday that the plant would be closed down and production moved to South Korea.

The unions insist that GM signed a document in 2008, committing itself to building a small SUV in Antwerp. But GM says the document in question was merely a 'plan,' not a commitment.

Struggling with overcapacity

However, GM's management insisted Tuesday that the planned closure of the Opel plant in Antwerp is not only necessary, but merely the first step in a long process at Opel.

Chief executive Nick Reilly told reporters outside the Opel headquarters near Frankfurt that he wants staff to accept his restructuring plan by mid-February.

Reilly urged the unions to accept management's plan to reduce overcapacity. The plan involves the closure of Antwerp as well as 8,300 job cuts.

"Even with the closure of Antwerp, our capacity is 1.5 million and that's before any overtime or any improvements that we can make."

The unions believe that the restructuring plan will make Opel too lean and leave it vulnerable when demand in the sector picks up again. GM, however, says the end of the scrappage incentives as well as a general overcapacity in the auto industry call for tough measures.

Saab sold

Meanwhile, GM has sold ist Swedish subsidiary Saab to Spyker Cars, a Dutch-based sports carmaker. The last-ditch sale saves Saab from being shut down completely, a process that had already been underway due to lack of interest for the iconic brand. Spyker was the only bidder left, after investment firm Genii Capital pulled out on Monday.

ng/Reuters/dpa/AFP
Editor: Rob Turner