According to General Motors, of which Opel is a subsidiary, closing its Antwerp plant was “the most logical step” given the circumstances.

GM broke the news to representatives of the factory’s workers on Thursday morning. “We intend to go through with collective lay offs,” local Opel management said. “Meaning we intend to close the plant.”

“This is the last straw,” Eddy de Decker of the ACV union said. “As far as General Motors is considered, this plant is done for.” Opel currently manufactures its Astra model in Antwerp. Union representatives expect the factory to close its doors in June.

The Belgian Opel plant is the first European factory to fall victim to GM’s American bankruptcy last June. GM filed for bankruptcy after massive losses worth billions of euros. The American government acquired a controlling interest in the company afterwards. To ensure the car giant’s continued existence, GM needed to cut back on spending. It stopped producing its legendary American Pontiac brand, sold Hummer to Chinese business interests, and put up its European subsidiaries Opel and Saab for sale.

Heavy blow

After GM’s bankruptcy, the fate of the Antwerp plant was long mired in uncertainty. It seemed the company intended to sell Opel to the Canadian automotive company Magna and the Russian Sberbank bank. The parties had already agreed to a statement of intent, making it clear they planned to close the Antwerp plant, which led to demonstrations. The European commission mediated between Belgium and Germany. In Belgium, many feared Opel would prefer shutting down its Antwerp plant to one in Opel’s home country.

Magna later decided to keep the plant open, but GM finally rescinded its deal with Magna after the market began to improve. Today, Opel announced that 4,000 jobs will soon be scrapped in Germany as well. Some 8,300 jobs will be scrapped in various parts of Europe. Nick Reilly, GM’s European president, believes that the European car market is suffering from a structural supply surplus.

The closing of the Antwerp plant is the hardest blow for the Belgian car industry since Renault closed its Vilvoorde plant in 1997. Last year, 517,000 Opels, Audis, Fords and Volvos were built in the four car manufacturing plants that remain in Belgium. Before the economic crisis, that number stood at one million. The shutdown of the Antwerp factory does not bode well for the rest of the Belgian car industry. Renault is looking to move its manufacturing base to Turkey and Volvo and Saab are also hanging on for dear life.