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GM to spend at least $750 on shutting down the Opel factory in Bochum

Published by on May 19, 2014 in News Leave a comment

Opel Bochum

Two years ago, Opel’s former CEO, Karl Friedrich Strake, announced General Motors’ decision to close down the production factory in Bochum, Germany. The facility, which was the first one Opel opened after World War II, was sacrificed to bring Opel to profit after 10 years of financial struggle. The factory close down is scheduled for 2016, when the current generation Zafira production will end and the model will be replaced by a new generation.

But, according to Reuters, this move by General Motors is going to cost them a little, with shutdown costs estimated at around $750 million. A large part of this cost will consist in early retirement costs and severance payments, with each one of the current 3,300 employees getting 160,000 Euros (around $220,000). The rest of the money will go into moving the production equipment for the Zafira to the carmaker’s factory in Russelsheim. This move is estimated at around 50 million Euros (approximately $70 million) and is preparing the Russelsheim facility to manufacture the next generation Zafira.

Opel’s factory in Bochum manufactured its first car in 1962 and its glory days were in the late 1970s and early 80’s, when the factory employed more than 20,000 workers. The Opel Astra H Classic, the Opel Zafira B and the Zafira C Tourer are some of the models produced here in the past decade.

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