24
Nov

Germany: no subsidy race for GM jobs

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Germany has found itself in a bidding war with other European nations who are trying to save General Motors jobs there.  General Motors European executives are meeting with government officials from a number of European capitals to discuss the company’s plans to shed a quarter of production.

However,  German minister responsible for this portfolio have said they will not enter into a subsidy race to keep the jobs in Germany.  An earlier deal with the Canadian entrepreneur fell through when General Motors bankruptcy status with its German operations changed.

Some European countries were angered when they found out that the Canadian company Magna had won the support of the German government and some subsidies.   The General Motors decision to hang on to its plant in Germany has frightened neighboring countries because they feel the auto giant would sooner close nonproductive plants in their countries than close the German operation.

Members of the European communities have warned that any General Motors job cuts must be made on an economic rather than political basis. Officials in Britain and Poland have said they will in fact subsidize any operations there but have not quoted figures.

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