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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (1504)	6/26/2014 10:05:24 AM
From: Kirk ©	Read Replies (1) \| Respond to of 26585

Costs matter..... General Motors will close its Opel Bochum factory in Germany, in pursuit of bringing down its high operating costs in Europe. Closing Opel Bochum Plant will cost $866 million: GM President BY COSTAS PITAS LONDON Wed Jun 25, 2014 3:31pm EDT (Reuters) - The closure of Opel's Bochum factory in Germany will cost a total $866 million (635 million euros), the president of parent company General Motors (GM.N) Dan Ammann told Reuters in an interview in London on Wednesday. The firm decided last year to close the plant as part of a drive to bring down costs in Europe and has since been negotiating with the IG Metall trade union. On Wednesday, Ammann said the firm had already booked $381 million of the cost in its results from last year and the first quarter of 2014. A further charge of $485 million will be taken during the course of this year with the total figure expected to stand at $866 million, Ammann said. The figures relate to both vehicle and transmission facilities at the Bochum site. Last week, loss-making Opel said it had reached a severance deal with workers at its Bochum factory, with the closure seen as a key step in the automaker's restructuring. The firm had not previously given a figure for the cost but two sources told Reuters in May that they expected the sum to total 550 million euros. (Editing by Keiron Henderson)