It has been revealed that over 11,000 jobs are to be cut across Europe, 1,400 of those are in the UK. These cuts are happening after Magna, the Canadian-based spare parts venture, agreed to take over Opel and Vauxhall from General Motors.
Magna’s restructuring of Opel is yet another sign that Europe’s auto industry is flagging in the face of the recession, despite the spate of ‘cash incentives’ offered to consumers to buy new cars.
It’s been a rocky road for the Big 3 automakers as they’ve struggled for survival and relevance in a down economy. In the biggest auto industry shakeup in 30 years, existing companies have been re-organized, torn apart, or sold off, resulting a complete reshaping of the auto industry landscape. Whether through government handouts or good old American ingenuity and entrepreneurship, GM, Ford, and Chrysler are revitalized and ready to deliver the exciting and environmentally friendly automobiles that consumers crave. But unlike the 70s, when American automotive manufacturers faced a threat from the Far East, today that threat comes not only from that part of the world but from newer more nimble competitors such as Tesla, right here in their own backyard. Our infographic breaks it down.