The hard consequences of the Blitzfusion

The purchase of Opel by Peugeot seems decided thing. Trade unions and politicians are still trying to win the French concessions to the Joberhalt. But there is no way around a hard renovation.


Opel-Chef Karl-Thomas Neumann

Opel boss Karl Thomas Neumann

Tuesday, 21.02.2017
10:53 clock

Little time? At the end of the text there is a summary.

The chancellor’s office and the labor leaders of IG Metall have not yet lost their anger. Many still regard it as an affront that they were informed so late about the plans of GM to sell the European subsidiary Opel to PSA Peugeot Citroën. There is talk of an unprecedented violation of all German and European co-determination rights. The state secretary Matthias Machnig, swiftly appointed to the Federal Commissioner for Opel, once again demanded on ZDF “Morgenmagazin” on Monday that the verbally formulated promises should also be reflected in the contracts and company agreements.

But the public saber rattling is nothing more than proof that the fight is lost before it even starts. Much more than good words are not left to the negotiators of the Opel workers to enforce the interests of their clientele. Because the fate of Opel is decided in Paris and Detroit – and not in Rüsselsheim or Berlin.

Especially the long-time employees in the Rüsselsheim, Eisenach or Kaiserslautern plants are experiencing these days like a déjà-vu: Concern about what could happen to Opel after General Motors filed for bankruptcy in 2009 is still vividly remembered. “The worst thing would be a hanging game as after the GM bankruptcy,” says a works council from Rüsselsheim.

Such a hanging party should be spared the Opelians this time. Because unlike in 2009, everything speaks for the parties to know what they want. And that the ranks are closed on both sides. Otherwise, the delegations of GM and PSA would not have been able to negotiate for months in secret.

Opel production in Europe

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design center

    
 Plant, design and development

Without the interference from the outside, both sides may have been able to explore the pros and cons of the business in peace – which in turn reduces the risk that problems will only become visible after the contract has been concluded. Reason enough to assume that Carlos Tavares once given pledges do not have to collect again. According to information from government circles, the PSA boss wants to stick to the job guarantee until the end of 2018 and the investment commitments for the Opel locations in Germany until 2020 if they are taken over. After that, everything is open.

Critics now fear that it gets the thicker afterwards. Because the acquisition of Opel makes sense only for PSA Peugeot Citroën, if after the merger, more comes out than the sum of both parts.

While Opel boss Karl-Thomas Neumann sees the chance to create a “European champion”, industry expert Ferdinand Dudenhöffer fears massive job losses. The staff reduction is the only effective cost lever for Tavares, says the head of the CAR center at the University of Duisburg-Essen. He sticks to his assessment that every third of the approximately 19,000 Opel jobs in Germany is on the verge of closing the deal. “2018 can go with the severance pay,” says Dudenhöffer.

PSA already has the refurbishment behind it

The first public comments from French trade union leaders also raise fears that distribution struggles will be tough. “Opel has been losing profitability for 16 years and GM wants to get rid of the company,” said Christine Virassamy of the Federation of Trade Unions CFDT. “We fear that this could be a heavy burden for us.” Further concessions, the trade unionist made it clear, was not to be expected after the concessions in recent years.

To make matters worse for the Opel employees Virassamy thus provides a hard to refute argument. Because in the course of the renovation, the PSA employees have swallowed several toads. Around 22,000 jobs have been lost in the past ten years, and since July last year, employees must also work on up to twelve Saturdays a year, when the order situation requires. Weekly working hours can be extended to up to 44 hours in such cases. PSA Peugeot Citroën now writes profits, Opel, however, remains in the loss.

compass opinion

At best, a painful job reduction could be avoided if PSA could develop additional markets or business fields together with Opel. Electromobility, for example, which Neumann wanted to turn to in any case. However, the new model Ampera-e comes from the development department of General Motors. The Americans would have to provide their know-how – as a dowry, so to speak.

As for the new markets, it is hoped in Paris and Rüsselsheim on the new major shareholder Dongfeng. The Chinese could open the door to China and open up new perspectives for Opel. So far, Opel had strict orders from Detroit to limit itself to Europe. That could be history very soon.

In summary: After the takeover by PSA Peugeot Citroën Opel employees can hope for a gallows period. But then it could be tight, because unlike their French counterparts, the Opel have the restructuring for the path to profitability ahead of him. In addition, if the merger is to make sense, new business areas or markets must be created on which the Group can grow.

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