The European Commission has proposed to provide Germany with € 6.9 million from the European Globalisation Adjustment Fund (EGF) to help 2,692 former workers of Adam Opel AG and one of its suppliers to find new jobs.

© HABRDA / Shutterstock

Germany applied for support from the EGF following the dismissal of 2,881 workers by Adam Opel AG and one of its suppliers. These job losses were the result of the shutdown of the Opel production plant in Bochum, triggered by the drop in demand over the period of 2007 to 2013, as a consequence of the global economic and financial crisis.

The measures co-financed by the EGF would help 2,692 redundant workers to find new jobs by providing them with career guidance and peer groups, vocational training, business start-up advisory services, job scouting, mentoring and advisory services after reemployment and training allowances.

The total estimated cost of the package is €11.5 million, of which the EGF would provide €6.9. The proposal now goes to the European Parliament and the EU's Council of Ministers for approval.

Background

As a consequence of the financial and economic crisis, the number of newly registered cars in the EU and EFTA Member States decreased from more than 16 million down to 12 million over the period 2007-2013. Manufacturers of small and medium-sized vehicles of the medium-price segment have been particularly hard hit. A shift from medium-priced vehicles to economy vehicles could be observed, in addition to the sharp overall drop in car sales.

Adam Opel AG, as one of the major players in the medium-priced segment of small and medium-sized vehicles, has been particularly hard hit by the crisis. Between 2007 and 2013, Opel sales in Europe fell by 39 % and the enterprise is facing problems of overcapacity.