Following yesterday's statement for its workers to adopt a winning attitude, GM has confirmed that it will close its manufacturing plant in Antwerp, Belgium, effectively laying off hundreds of workers.

It also warned that more job losses across both Opel and Vauxhall operations are likely.

“We fully understand the effect this announcement has on the Antwerp employees and their families and we sympathise with them,” said Opel CEO Nick Reilly.

“Many have been dedicated to the plant over generations and have done an excellent job producing great quality cars.

"The decision to announce this today was not taken lightly; instead, it is the unfortunate result of the current business reality.

"We must make this announcement now so that we can secure a viable future for the entire Opel and Vauxhall operations.”

GM also refused to rule out further job losses as it continues to restructure its European operations.

"It is expected that the full restructuring plan, when completed, will affect all Opel/Vauxhall production sites and entities through measures such as capacity reductions, job redundancies and/or labour cost reductions," it said in a statement this afternoon (Jan 21).

The company expects the Western European car market in 2010 to be 1.5 million vehicles below 2009 levels and almost four million below its peak in 2007.

"It is not expected to return anytime soon – if ever – to these peak levels, resulting in significant overcapacity in general and at Opel in particular," said GM.

Therefore Opel needs to reduce capacity by approximately 20%.