DETROIT -- General Motors Co. is pressing labor leaders for deep cuts at its European unit to stem mounting losses in the region, according to a report.
GM next week will report substantial losses at its Opel/Vauxhall European unit when the automaker reports fourth-quarter and 2011 financial results, The Wall Street Journal reported on Tuesday, citing an unnamed GM official.
"There is increasing frustration with Opel and a feeling that the cuts two years ago did not go nearly deep enough," the official told the Journal. "If Opel is going to get fixed, it is going to get fixed now and cuts are going to be deep."
GM is in talks with European labor officials about additional plant closures and job cuts, the paper said, citing other sources.
The sides have discussed shifting some production from GM factories in South Korea to soften the impact of job cuts in Europe.
Jay Cooney, a GM spokesman, said the automaker is working on a plan for Opel but has nothing to announce. "We are very committed to making Opel successful again," he said.
Last month, Reuters reported that GM was discussing the transfer of some Chevrolet production from Korea to Europe in a deal that also would include cost cuts that are needed to stem Opel's losses.
No deal has been reached between GM and its European unions, the Journal's report says.
GM is considering closure of assembly plants in Bochum, Germany, where about 3,100 employees work, and Ellesmere Port, England, where it employs another 2,100 workers, the paper said.
GM lost $580 million in Europe during the first nine months of 2011, according to regulatory filings.
The Journal reported that the pace of losses has accelerated amid the continent's debt crisis and stagnating economy.
GM has lost $14.5 billion in Europe since 1999 and the unit has become the automaker's biggest challenge since emerging from bankruptcy in 2009.
During its bankruptcy restructuring, the automaker agreed in 2009 to sell 55 percent of Opel to Magna International Inc. and partner Sberbank, before reversing course in November 2009.
In recent months, GM officials have stressed that they aren't trying to unload Opel and have vowed to fix its problems.
GM CEO Dan Akerson has appointed several top executives to Opel's board recently, including Vice Chairman Steve Girsky, CFO Dan Ammann and global product chief Mary Barra.