Opel drives back production

D he acquired from the French PSA group carmaker Opel makes the ribbons run slower in some production plants. The reason is lower sales expectations for the Opel models in the coming months. At the main plant in Rüsselsheim, the number of cycles is expected to fall from 55 to 42 vehicles per hour after the summer holidays, from 37 to 30 at the Eisenach plant, the Mainz newspaper Allgemeine Zeitung reported, citing business circles.

The company confirmed that they regularly adjust production planning. However, they did not want to comment on the details of the internal planning. According to newspaper Opel has already throttled the production in the Polish Astra plant in Gliwice (Gliwice), where only 25 instead of 40 cars per hour run off the line.

Staffing remains the same

With throttled tape speed usually the same personnel work. There are only savings in the use of materials, while the fixed and personnel costs per car increase. Employees are growing worried about the future of the work in the face of declining productivity, the newspaper said. Workers’ circles reported that the works council had failed to come up with alternative proposals such as coordinated overtime reduction.

PSA and Opel have agreed not to close any plant and to waive operational layoffs by 2023. Investments have also already been made, such as the conversion of Eisenachs to the SUV Grand Land X, including an electric version. However, the PSA’s plan to seek a buyer for large parts of the Rüsselsheim development center is met with continuing displeasure. Up to 4,000 engineers would have to change employers in this case.

For the first time in a long time, Opel had achieved an operating profit in the first half of 2018 following cost cuts. In addition, PSA urges the acquired a year ago by the US group General Motors subsidiary to market their cars at the most cost-covering prices. Certain distribution channels, such as heavily discounted car rental company sales, are being scaled back. Opel should also not produce so many cars “in heap”, which then have to be pushed with heavy discounts in the market.