A report published by Reuters indicates closing the Bochum factory in Germany will cost Opel a whopping 550M EUR.

A report published by Reuters indicates closing the Bochum factory in Germany will cost Opel a whopping 550M EUR.

General Motors announced more than a year ago plans of shutting down Opel's plant in Bochum in 2016 as a method to make the German brand profitable after more than ten years of losses. However, it won't be that easy since closing the factory will cost GM at least 550M EUR, according to two sources close to the issue cited by Reuters.

On top of the expense list is going to be cleaning up the factory as well as transferring all the necessary Zafira-related tools and equipment to Opel's Rüsselsheim production facilities. A huge bill will also have to be paid to the Bochum factory's 3,300 employees in early retirement programs and severance payments.

German newspaper Frankfurter Allgemeine Zeitung says Opel has already signed off the 550M restructuring sum and by shutting down the Bochum factory it means the next-gen Astra will be manufactured outside Germany which will probably affect sales. Production will kick off sometime next year in Ellesmere Port, UK and Gliwice, Poland where Opel is investing 300M EUR to get them ready.