Opel workers have voted to stay on strike

The negotiations come as a strike against the possible redundancies continues into its fifth straight day at one of GM's Opel plants in Germany.

Work at the Bochum site has been at a standstill ever since last week's news.

Although a few staff have returned to work, the union says most will stay out until compulsory layoffs are ruled out.

German targets

With GM Europe having failed to make a profit in the last four years, Detroit-based GM, the world's largest car manufacturer, wants to cut costs at the division by as much as 500m euros ($623.8m; �347m).

Although it has not yet said which of its 11 European plants will be affected, GM's German sites appear most vulnerable because of high labour costs.

Germany has the second highest labour costs in the world, according to the Organisation for Economic Cooperation and Development.

GM Europe Brands: Saab, Vauxhall, Opel Sales: 1.8m vehicles (2003) Employees: 63,000 Factories: 11 (Germany, Sweden, UK) Finances: $161m loss H1 2004 Click for General Motors' share price

And of the German facilities, staff at Bochum, which makes Astra and Zafira models, look the most at risk after GM recently said the plant had a "competitiveness issue".

While an Opel spokesman would only say that talks had begun with union representatives, other officials at the company have warned that a quick deal should not be expected.

'Strike unhelpful'

An official for the German IG Metall metalworkers union said assembly lines remained idle into Monday afternoon, but a few workers had begun limited manufacturing of parts.

"We are not preventing anyone from working, people have to make money," he said.

German politicians have got involved in the stand-off and urged all workers at the Bochum plant to return to work, telling staff that the strike was not beneficial to their long term interests.

"I hope work resumes soon, anything else is not advantageous," said German economics minister Wolfgang Clement.

Opel works council chairman Klaus Franz said at the weekend that he hoped to convince GM that it could bail out Opel without resorting to layoffs.

Mr Franz also warned that any ongoing stoppage at Bochum could affect GM's other European facilities, because of the plant's production of some key parts for other GM vehicles.

GM Europe lost $161m in the first half of 2004, up from $68m one year earlier, according to the latest figures. It currently employs 64,000 people in total, making Opel, Vauxhall and Saab brands.