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Magna to cut 4,000 Opel jobs in Germany

Canadian auto parts maker Magna said Monday that it planned to cut 4,000 posts at loss-making carmaker Opel once it completes its takeover of the General Motors' German unit.

Magna to cut 4,000 Opel jobs in Germany
The first to go? Photo: DPA

Co-chief executive Siegfried Wolf said his group, which agreed last week to buy a majority stake in Opel from General Motors, was sticking with plans to eliminate around 10,000 jobs at Opel and its sister brand Vauxhall in Britain.

He confirmed figures reported over the weekend in the German media but said Magna had not modified its terms since late May, when it first signed a memorandum of understanding with GM on the deal.

“We’ve always spoken of 10,500 jobs in Europe,” Wolf told reporters at a press briefing in Frankfurt ahead of the international auto show. “Of that, 4,000 positions are acutely affected in Germany.”

The Opel operations, including Vauxhall, employs some 50,000 workers across Europe.

Only one Opel plant – located in Antwerp, Belgium – will be closed in Magna’s restructuring efforts, Wolf said.

German Economy Minister Karl-Theodor zu Guttenberg told the Sunday newspaper Bild am Sonntag that he believed the cuts were deeper than those estimated earlier by Magna.

GM said last week that it would sell a 55-percent stake in Opel to a consortium comprised of Magna and the state-owned Russian lender Sberbank. GM will retain 35 percent of Opel and employees the rest.

Financial details of the deal were not disclosed and GM noted that key details still had to be agreed upon. Wolf said he expect the deal to be inked within the next two weeks.

Wolf also stressed Monday that Opel could be made profitable again by 2015 and dismissed allegations that Magna would invest €600 million ($870 million) of German taxpayers’ money in Russia.

Germany has extended a bridging loan worth €1.5 billion to keep Opel going until the takeover is completed, along with loan guarantees worth another €3 billion to get the new company started.

Other European Union countries with Opel plants, such as Britain, Poland and Spain, are worried that Germany’s generous aid may mean German jobs take preference and that it could breach European Union rules on state aid. Germany is seeking support from the other countries meanwhile to eventually reduce its own contribution.

Opel is expected to struggle in a sluggish global auto industry where in Europe and North America too many cars are being made for too few customers. But the Magna boss stressed that the deal opens the way for Opel to grow in Russia, which hopes to overtake Germany as Europe’s biggest car market.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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