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Labour leader Klaus Franz rescinded hundreds of millions of euros in cost concessions that workers agreed to on condition that Opel was bought by Magna (MGa.TO), the Canadian group the Berlin government had long favoured as buyer.

"General Motors'' behaviour towards workers is completely unacceptable," German Economy Minister Rainer Bruederle told reporters the morning after GM''s shock news. "General Motors'' behaviour towards Germany is completely unacceptable."

Germany viewed Magna and its Russian partner Sberbank (SBER03.MM) as most likely to preserve as many German jobs and plants as possible.

Half of Opel''s 50,000 staff are based in Germany.

"General Motors'' behaviour shows the ugly face of turbo-capitalism. That is completely unacceptable," said Juergen Ruettgers, premier of the state of North Rhine-Westphalia, home to Opel''s Bochum plant, which is seen at risk of closure.

GM Europe will now revert to a reorganisation plan that envisions chopping fixed costs at Opel by 30 percent, a spokeswoman said.

"Failure to reach the needed restructuring would result in the operation becoming insolvent, an unnecessary and undesirable outcome for all involved," GM Europe said.