General Motors is planning to lay off tens of thousands of Opel workers in Europe. Around one in five jobs at the car manufacturer could go. GM's management is threatening to allow its European subsidiary to go bankrupt if unions do not accept its plans.

Staff at factories in Germany and Belgium have already announced strikes in protest at GM's cancellation of the planned sale of Opel. The German government has also condemned the U-turn as unacceptable.

On Tuesday, GM announced its shock decision to drop the deal to sell Opel to the Canadian company, Magna, and a Russian bank. Improving business conditions in the car industry were cited as being behind the move. GM says it will not be scrapping more jobs than would have gone under Magna.

photo: flickr/alles-schlumpf