Labor Hails GM Europe's Opel Astra to U.S.

FRANKFURT December 8, 2006; Reuters reported that General Motors' European labor force on Friday hailed news that the world's biggest carmaker had decided to sell Belgian-made Opel Astras in North America under the Saturn brand from late next year.

"General Motors is using its global network to market an attractive vehicle in the United States and thus have a counterweight to Japanese competition," the Opel works council said in a statement.

"This will lead to a positive contribution for ensuring employment in Europe."

The Astra is the number two-selling compact in Europe, with more than 1.2 million sold since the current version was launched in March 2004. GM is hoping it will hold appeal across the Atlantic as well at a time of high fuel prices.

GM did not say how many Astras it intended to export from its plant in Antwerp, but one person familiar with the situation said it would be around 35,000 units a year.

GM Chief Financial Officer Fritz Henderson told Reuters in September that the group's European exports to North America would only fill out market niches.

"I don't think it is a viable strategy in high volumes because I worry a lot about currency risk I can't manage," he said at the time. The dollar has since slipped to 20-month lows against the euro (EUR=).

GM Europe now makes around 100,000 vehicles for export each year to markets including Mexico and the Middle East.