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GM to close some factories in Europe |
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Saturday, 24 March 2012 |
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US
auto giant General Motors intends to close one or two factories in
Europe in order to boost profitability at its loss-making Opel unit, the
Wall Street Journal reported on Friday.
Quoting sources familiar with the plans, the
newspaper said GM would make its decision public "within the next couple
of weeks", with Opel's supervisory board set to consider plant closures
at a meeting next week.
Neither GM nor Opel was willing to comment on the report when contacted by AFP.
But an industry source said "it is necessary for Opel
to become profitable on a lasting basis" and the options for doing so
"are not numerous".
GM's European operations have run up billions of
dollars in losses over the past 10 years and it believes shutting down
factories on both sides of the Atlantic as critical to restoring
profitability in the region.
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