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Belgian unions sue Opel over Antwerp closure

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Belgian unions sue Opel over Antwerp closure

January 26, 2010 15:16 CET

RUESSELSHEIM, Germany (Reuters) -- Belgian unions are suing General Motors Co.'s European unit Opel for breaching a contract with their workers when the carmaker decided last week to close its Antwerp plant and produce a planned vehicle elsewhere.

"The relocation of the agreed small SUV models is the only reason for the intended closure of Antwerp...There is a pending lawsuit on this matter filed by the unions of Antwerp," Opel's European works council said in a statement on Tuesday.

Speaking to reporters earlier, Reilly reaffirmed his belief that GM had never signed a legally-binding agreement to build a subcompact sport utility vehicle off of the Opel Corsa platform at the Flemish plant.

"It was not a commitment, it was a plan," he said at Opel's headquarters near Frankfurt.

GM now plans to build the SUV, which will be sold under the Opel and Chevrolet brands, at its Daewoo unit in Korea.

The idea of having two separate manufacturing sites for the same model, each with their own tooling and equipment costs, "no longer makes any sense at all," Reilly said.

Read more: http://www.autonews.com/article/20100126/ANE/301269964/1193#ixzz0djVE8RPg

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