GM Europe

Nick Reilly, the newly-appointed head of GM Europe, met with workers at Opel's European headquarters in Ruesselsheim, Germany on Friday to talk about the company's future.

Reilly and workers' council leader Klaus Franz have been at loggerheads in recent weeks over plans to save turn Opel's fortunes around by cutting an estimated 9,000 jobs.

But on Friday the two seemed to have found some common ground. The "best news of the day", according to Franz, was that Reilly had agreed not to make 548 workers at Opel's research and development centre in Ruesselsheim redundant.

The works council had warned that the development centre could not continue function if it lost so many key engineers and technicians.

Reilly, who has been operating as interim CEO before being confirmed in the position, was quoted in a statement as saying he was aware that "the topic of job reductions weighs heavily for every employee," and that it was "our goal to resolve this subject quickly and reach an agreement with worker representatives."

Franz, meanwhile, welcomed Reilly's "readiness for a constructive dialogue". He said that, the workers were now prepared to make some of the concessions requested by the company management, including wage cuts.

Opel employees want to see the company turned into a joint-stock corporation, a suggestion that Reilly has indicated that he is prepared to consider.

It is estimated that GM's restructuring programme will cost around 3.3 billion euros. The firm company is hoping to obtain around 2.7 billion euros in aid from European governments. The European Commission will scrutinize the plan, which Reilly hopes to have ready by the end of the year, before member states agree to offer any assistance.

cc/dpa/AFP/Reuters

Editor: Nigel Tandy