GM unveils Europe restructuring plan The head of General Motors" Europe arm told anxious German workers on Monday that he would have to restructure production of a key model in order to help return the European operation to profitability. Karl-Friedrich Stracke was met by jeers and whistles as he presented to workers the outline of a 10-point restructuring plan at Opel's mother plant in Rüsselsheim, said people who were present. GM is in the midst of making intricate and politically sensitive decisions on future product allocation at its plants, including for vehicles made in conjunction with PSA Peugeot Citroën, its French alliance partner. GM, which made a $747m pre-tax loss in Europe last year, is barred under its current agreement with unions from closing plants or sacking workers at Opel/Vauxhall before 2014. But workers fear cuts could follow that date as weak European demand has left Opel's plants under-used. Mr Stracke is set to present a full business plan to Opel's supervisory board in June but outlined some of its key themes on Monday. "It is in no way a [pure] cost-cutting plan, rather it will be a comprehensive strategy under which we will quickly return to profitability," he told a gathering of several thousand employees. By 2016 we will clearly improve our margins, market share and revenues. Management's goal is to move to a three-shift production at all Opel factories in order to raise capacity utilisation, Mr Stracke said. But due to demand levels in Europe, this would only make sense if the next version of the Astra is produced at two plants, instead of the current three. If we operate two plants on a three-shift basis, the production costs for the next generation of the Astra will clearly be below today's level. Today we have three factories operating with two shifts," he said. Although Mr Stracke did not specify plans for individual plants, labour representatives say the UK's Ellesmere Port and Poland's Gliwice are likely to continue making the Astra, while Rüsselsheim could lose out. Worker representatives fear GM may compensate Rüsselsheim by shifting production of another model from Bochum, Germany. Therefore, the Bochum plant is considered by workers to be most at risk. As an alternative to plant closures, workers have urged GM to export more vehicles from Europe in order to raise capacity utilisation. Mr Stracke said Opel would gain new markets, such as Australia, North Africa and the Middle East, while Opel's activities in China, Russia and Turkey would also be increased. However, exports alone would not be sufficient. "We have to do our homework in Europe," he said. He also confirmed talks with GM management about the possibility of shifting some Chevrolet production to Europe - a move which trade unions support - and reiterated that Opel would seek to raise margins by reducing material costs and production complexity. German politicians have raised pressure on GM to find a solution that avoids job cuts but have so far ruled out state aid.