Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Following a long negotiation process with trade unions and the Portuguese Government, General Motor (GM - manufacture of parts and accessories for motoror vehicles) announced the closing of the Azambuja factory by the end of 2006, justifying the closure with the high logistics costs and the need to transfer the production of Opel Combo to a larger factory located in Zaragoza, Spain.
Since the signed contract between GM and the Portuguese Government is valid up to 2008, the Portuguese Government declared its intention to sue GM.
All legal and contractual mechanisms will be put in action in order to compensate for the serious damages this decision causes to Portugal.
GM Europe already announced it would give back the incentives received from the Portuguese Government for the Azambuja unit which will exceed 30 million euros.
This closure will affect 1,200 direct workers. There is also the possibility that the closure of this factory will affect 600 more jobs in the supplying industry.
Eurofound (2006), General Motors, Closure in Portugal, factsheet number 63790, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/63790.