Up to 8,300 jobs are to be cut from Opel/Vauxhall workforce as part of its plan to be profitable by 2012. Loans and loan guarantees of up to €3.3 billion are being asked of several European governments.

Opel/ Vauxhall has announced that it will cut 8,300 jobs in order to resuscitate itself. Of those, 4,000 are based in Germany. The company also said it will refresh 80 percent of its product lineup and return to profit by the year 2012.

"Opel/Vauxhall has a clear vision to be a leading European manufacturer of high quality, desirable automotive products, based on German engineering," company CEO Nick Reilly said in a statement.

Part of the grand plan includes launching as many as eight vehicles this year alone. Cars such as the all-new Meriva, Corsa, Astra Sports Tourer and the Movano are on this list. In 2011 another four vehicles will be released into the market. One of them is the Ampera, a car destined to become Europe's first extended range electric car. It will be the poster boy for Opel's alternative propulsion technology and should share some inner workings with the fabled Chevrolet Volt.

The company says all these plans and more can be achieved in part using money it aims to borrow. It reckons a figure of €3.3 billion (US$4.5 billion) will be enough to run the company while it restructures. European governments hosting Opel/Vauxhall operations such as the UK, Spain, Poland and Austria are potential co-funders and €1.2 billion (US$1.6 billion) in outright loans or loan guarantees is being requested of them. Germany has already been asked to contribute €1.5 billion (US$2.06 billion) towards the total.

While things are moving towards a black 2012, Opel will start developing its own cars in the meantime. "If they are based on a vehicle architecture developed elsewhere, they will return to Rüsselsheim early to ensure they deliver on the Opel/Vauxhall brand promise," said a company statement.

Opel to Cut 8300 Jobs - Develop own cars