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Michael Lohscheller
Opel Post: Mr. Lohscheller, further negotiations are going on this week with IG Metall. Where are we standing?
Michael Lohscheller: The talks with our social partners in Germany are now in a decisive phase. After the good solutions that we have agreed upon together at our European locations, the result of these discussions will now determine the future of our company in our home country. The goal is clear: Together, we want to bring Opel in Germany on the same dynamic path as the other locations in Europe. It is our duty to properly position Opel in the tough competition of the automotive industry. The future is in our hands.
What does this future look like for our German locations? As we have already emphasized several times, we want to invest in Germany. The prerequisite for extensive investments is competitiveness at the sites in Eisenach, Kaiserslautern and Rüsselsheim. Together with our social partners, we must create this condition. Because in order to build a sustainable future, every investment must be based on a strong performance plan.
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“Together we want to bring Opel in Germany on the same dynamic path as the other locations in Europe.”
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Michael Lohscheller, Chief Executive Officer (CEO) of Opel Automobile GmbH.
Do the workers in the factories have to pay for the failures of the past? No, because we all have one common goal: to secure the future of our company. After almost 20 years of sustained losses, the status quo is clearly not an option. We can not afford to fail with another plan. We have to PACE! very disciplined, because this plan will pave the way to beat the competition and give Opel back the place we deserve among the automakers. To significantly improve our situation, we need to improve labor costs, global efficiency and performance. Once we’ve made the turnaround, it’s the people who benefit from a strong company.
Keyword labor costs – how well are the savings plans compatible with the current tariff increase? This is difficult! That is why we have asked IG Metall to suspend the tariff increases for the time of the negotiations. We are simply not in the same financial situation as the other German car manufacturers, but we are in the same difficult environment. That’s why we need to reach an agreement with IG Metall and the works council that will restore Opel’s competitiveness against its competitors.
Where do we stand compared to the competition? We have to be so honest to admit that all our competitors are already profitable and constantly improving their performance. We ourselves are not yet at a level that secures a sustainable future for our company. To meet this challenge, we need to implement the appropriate measures. A simple look at the numbers shows. While other German carmakers report record results, we continued to write losses last year. In the period from 1 August to the end of the year alone, as part of the Groupe PSA, a minus of 179 million euros was incurred – mathematically this results in a return of minus 2.5 percent. How far ahead of our competitors is currently the results of other German car manufacturers, the recurring margins in the automotive business (Automotive Recurring Operating Margin) between 7 percent and 10 percent. There is no reason why Opel can not regain its old strength. But we have to tackle it now – as part of the PACE! Plan.
How do you assess the chances that an agreement will be reached between the collective bargaining parties? I am very confident that, together with our social partners, we will find our way into a sustainable and successful future for Opel in Germany and for the entire company – without redundancies and plant closures.
What makes you confident? We have already achieved some very important achievements. In our engineering center in Rüsselsheim, for example, a total of 15 competence centers in various technology areas are responsible for the entire Group. In addition, the engineering teams in Rüsselsheim take on global responsibility for the development of Groupe PSA LCV platforms and modules – from advance development to series maturity. We can be proud of these achievements. In addition, our export offensive is making good progress in countries outside Europe. And we are also making great progress with the electrification of our vehicles. But we have to weatherproof our company against every storm. We will do that because we at Opel have a new attitude and a strong strategic plan.
With what motivation do you go personally in the certainly difficult negotiations? I am committed to a good future for Opel. My leadership team and I will invest all our energy in these negotiations to make Opel successful and profitable again.
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“We have already achieved successes. For example, a total of 15 competence centers will be located in our Engineering Center in Rüsselsheim. “
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As of April 2018