GM’s European Unit to Cut Jobs, Shut Plant

General Motors Corp.’s ailing European operation will shed thousands of jobs and may close one of its 13 car plants in an attempt to return to profitability by 2003, the chief executive of its German Opel unit said.

Outlining a plan to save more than $1.8 billion a year, Carl-Peter Forster said production capacity will be cut by 15%, or as many as 350,000 vehicles, and suppliers will be asked to trim prices by $900 million.

He declined to forecast a specific number of layoffs among the 75,000 workers, saying the plan will be complete by the end of September.

To streamline its sales network, Opel said, it will close as many as 30% of its 2,000 dealerships in Germany, where its market share has dwindled to 12% after hovering around 17% in the mid-1990s. The company has said the decline has bottomed out and market share is starting to increase.

GM shares fell $1.52 to $61.99 on the NYSE.