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GENERAL MOTORS

Saab unions: Opel merger would be ‘a catastrophe’

Union leaders in Sweden have rejected the notion of a merger between Saab Automobile and the German General Motors (GM) brand Opel.

“It would be a catastrophe,” said Håkan Danielsson, chair of the Saab chapter of the Swedish Association of Graduate Engineers, to the TT news agency.

No discussions of a possible merger are currently taking place. Rather, it is German unions who have raised the idea.

“I understand that Opel sees a benefit in adding a further brand to help secure German jobs. There aren’t any factories operating at capacity, so Opel would earn money by building Saab, but we’d simply lose out,” said Danielsson.

His assessment is shared by the head of the IF Metall union, Paul Åkerlund.

“A merger wouldn’t work,” he said.

Unions in GM-owned factories in Europe will act in concert on Thursday when they demonstrate in an effort to save their jobs.

In Trollhättan, labour leaders are planning a candlelight procession and speeches.

In Germany, the tone is more combative with talk of outright protests.

“We’re choosing slightly different approaches,” said Åkerlund.

Both Saab and Opel are suffering from heavy losses and have asked their respective governments for help to stay afloat.

Earlier, GM forced the two divisions to compete with each other.

While Opel’s factory in Rüsselsheim won the right to produce the next generation Saab 9-5, Saab’s business and restructuring plans call for all production to be moved back to Trollhättan.

Saab and Opel share a large number of common parts and have worked closely in recent years, but the two brands are already on their way to separating from one another.

The assembly of Saab wheel and brake units, which previously took place in Rüsselsheim, is in the process of being moved to Trollhättan, according to TT

CARS

Germany orders recall of 43,000 Opel diesel vehicles

Germany's KBA transport authority said Friday it had ordered carmaker Opel to recall tens of thousands of diesel vehicles worldwide that were configured to fool regulatory emissions tests.

Germany orders recall of 43,000 Opel diesel vehicles
A traffic light turns red in front of the company logo of the car manufacturer Opel in Hessen. Photo: DPA

The authority “ordered an obligatory recall on October 17th” for Opel Insignia, Cascada and Zafira diesels meeting the latest Euro 6 emissions standard manufactured between 2013 and 2016, saying they were fitted with an
“illegal 'defeat device'”.

Such software is designed to make vehicles appear less polluting during regulators' tests than in real on-road driving.

Opel has already begun voluntary refits to the 96,000 affected vehicles across Europe, a company spokesman told AFP, with some 43,000 yet to be updated.

SEE ALSO: German prosecutors raid Opel over diesel allegations

That means an officially-approved refit procedure exists that can quickly be applied to the recalled vehicles.

However, Opel has rejected the KBA's finding that its vehicles performed illegally, and said Monday it would contest any compulsory recall order.

Opel this week became the latest German household name to suffer a police search at its headquarters in the wake of the “dieselgate” scandal, in which Volkswagen admitted in 2015 to installing defeat devices in 11 million vehicles worldwide.

Other prominent carmakers like Mercedes-Benz maker Daimler and BMW have already digested recalls of their own, while official probes into the emissions cheating are under way.

Meanwhile, German luxury automaker Daimler on Friday again cut its profit outlook for 2018, warning that costs related to polluting diesel engines would drag down earnings.

The Mercedes-Benz maker, which this year had to recall more than 770,000 diesel cars across Europe, said it now expected earnings before interest and tax (EBIT) to come in “significantly below” last year's figure.

The diesel saga erupted in 2015 when German rival Volkswagen admitted to installing “defeat devices” in 11 million diesels worldwide designed to dupe emissions tests and make the cars seem less polluting than they were.

Suspicions have since spread to other automakers as well.

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