Labour union puts GM French factory plan in doubt

* Deal to repurchase Strasbourg plant hangs in balance

* Three out of four trade unions sign deal

* GM headquarters to decide whether to maintain offer

STRASBOURG, 23 July (BestGrowthStock) – A plan to maintain
operations at a General Motors [GM.UL] plant in eastern France
was in doubt after a labour union refused to sign a deal on
Friday to freeze salaries and cut working days.

Three other unions agreed to the deal after more than 1,000
of 1,150 workers voted this week to accept conditions set by the
Detroit-based carmaker to keep the plant open.

General Motors had said it needed all four unions to agree
for it to complete the repurchase of a plant it put up for sale
in 2008 to help raise cash and avoid bankruptcy at the height of
the financial crisis.

“The conditions have not been met. General Motors Strasbourg
will inform General Motors Co in the next hours and the
headquarters will decide if it will maintain the offer,”
management of the French subsidiary said.

The Strasbourg factory is under the Motors Liquidation Co,
the entity charged with selling off GM’s unwanted assets to
reduce its debts.

After emerging from bankruptcy in the summer of 2009, GM
opted to buy back the plant which produces automatic
transmission systems for GM and BMW (BMWG.DE: ) cars.

On July 16, it offered to repurchase the plant for a
symbolic one euro on the condition that costs fell 10 percent.

Investment Analysis

(Reporting by Gilbert Reilhac; Writing by Bate Felix; Editing
by Dan Lalor)

Labour union puts GM French factory plan in doubt