Jump to content
Sign in to follow this  
William Maley

Opel/Vauxhall News: Opel To Halt Production At Two Plants

Recommended Posts

William Maley

Staff Writer - CheersandGears.com

August 24, 2012

General Motors will be closing down two Opel plants for a total of four weeks in response to a drop in demand for cars in Europe.

A report from Reuters says an agreement between Opel and labor representatives will have two plants, Ruesselsheim and a component plant in Kaiserslautern, to halt production for a total of 20 working days between September and the end of the year.

“The European automobile market is declining dramatically. Now, shortened working hours are the correct measure to bridge the weakness of the market,” said Opel's head of personnel, Holger Kimmes.

The decision to halt production is a “Kurzarbeit” (German for “short work”). Kurzarbeit is a temporary measure that allows companies to shorten hours to deal with ininsufficient demand. Workers can be sent home without or with reduced pay, and will get unemployment benefits of up to 67% of their normal pay.

9,300 blue and white collar workers at Opel are affected.

However, analysts said that closing down plants won't help at all.

"Closing down plants for a few days isn't going to help Opel with its most pressing problem of overcapacity," said Frankfurt-based Commerzbank analyst Sascha Gommel.

Source: Reuters, The Truth About Cars

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.


View full article

Share this post


Link to post
Share on other sites

What does GM and the European Union not get about over production?

Two weeks shutdown will not correct the glut of assembly space and the lack of customers.

They need to close down at least 2 assembly lines and lay off the workers.

I would hate to loose my job also, but then do you have a whole division close and everyone looses their jobs or do you cut back to what is sustainable?

Share this post


Link to post
Share on other sites

Dfelt, I could not agree more. I would go one step further. Close all Opel plants for at least one year, then open those that are economically viable. This will require breaking the overpampered unions in Europe. Other carmakers in Europe should do the exact same thing. (BMW and VW don't need to for obvious reasons.) Times have changed and European unions must adapt to the new economic reality imposed by bad economies and worse banks and the Euro.

Share this post


Link to post
Share on other sites

Times have changed and European unions must adapt to the new economic reality imposed by bad economies and worse banks and the Euro.

Unions have Merkel's backing. By putting them off on a reduced rate, unions go on unemployment for remainder of their salary. What it will do is put strain on Germany's social coffers. In long term let us see how that will work.

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Who's Online   1 Member, 0 Anonymous, 27 Guests (See full list)



  • Social Stream

  • Similar Content

    • By Drew Dowdell
      Buick's compact convertible, the Buick Cascada, won't be returning for 2020.  Buick has informed dealers that final orders for the car need to be in by the end of the month as production of the car is scheduled to end in the summer. The Cascada is produced by GM's former Opel division, now owned by PSA, in Poland.
      The Cascada was Buick's first convertible since the the Buick Reatta.  Approximately 17,000 have been sold since the car went on sale in 2016.
      The discontinuation of the Cascada, along with the pending departure of the LaCrosse, mark Buick's slow creep towards being an all-crossover brand.

      View full article
    • By Drew Dowdell
      Buick's compact convertible, the Buick Cascada, won't be returning for 2020.  Buick has informed dealers that final orders for the car need to be in by the end of the month as production of the car is scheduled to end in the summer. The Cascada is produced by GM's former Opel division, now owned by PSA, in Poland.
      The Cascada was Buick's first convertible since the the Buick Reatta.  Approximately 17,000 have been sold since the car went on sale in 2016.
      The discontinuation of the Cascada, along with the pending departure of the LaCrosse, mark Buick's slow creep towards being an all-crossover brand.
    • By William Maley
      Back in June, Ford and Volkswagen signed a Memorandum of Understanding for a new alliance that would focus on commercial vehicles. Since then, the two companies have been in discussions about it and there have been various rumors flying about. Yesterday, Volkswagen CEO Herbert Diess added some more fuel to the fire.
      Speaking to reporters outside of the White House, Diess revealed that the German automaker is interested in using Ford's plants in the U.S. to build vehicles.
      "We might use Ford capacity here in the U.S. to build cars for us," said Diess.

      “We need additional capacity here in the United States, we need an additional car plant for VW and Audi combined.”
      The company is in "quite advanced negotiations in Tennessee" about a new plant in the state - Volkswagen operates one in Chattanooga for the Passat and Atlas. But Diess did say "there might be other options as well," most likely talking about using some of Ford's plants in the U.S.
      For now, this is an idea being floating out there. The two are continuing their talks about what this alliance will look like. Diess said more details would come out in January.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      Back in June, Ford and Volkswagen signed a Memorandum of Understanding for a new alliance that would focus on commercial vehicles. Since then, the two companies have been in discussions about it and there have been various rumors flying about. Yesterday, Volkswagen CEO Herbert Diess added some more fuel to the fire.
      Speaking to reporters outside of the White House, Diess revealed that the German automaker is interested in using Ford's plants in the U.S. to build vehicles.
      "We might use Ford capacity here in the U.S. to build cars for us," said Diess.

      “We need additional capacity here in the United States, we need an additional car plant for VW and Audi combined.”
      The company is in "quite advanced negotiations in Tennessee" about a new plant in the state - Volkswagen operates one in Chattanooga for the Passat and Atlas. But Diess did say "there might be other options as well," most likely talking about using some of Ford's plants in the U.S.
      For now, this is an idea being floating out there. The two are continuing their talks about what this alliance will look like. Diess said more details would come out in January.
      Source: Automotive News (Subscription Required)
    • By William Maley
      Ford has been banking on China to help revive sales of Lincoln and made plans to start building models in late 2019. But the on-going trade war between the U.S. and China has caused the company to reconsider their plans.
      “What we want to do is accelerate that. We will look for opportunities, but it’s a big undertaking and I think it won’t be a significant change in our plans,” said Joy Falotico, head of Lincoln and Ford’s chief marketing officer to Bloomberg.
      Currently, Lincoln doesn't have any local production in China. Instead, the brand has been importing vehicles from the U.S. which has meant getting hit with a 40 percent tariff by the Chinese government. This has caused sales of Lincoln vehicles to slow to a crawl. Last year, Lincoln sales rose 66 percent in China. But in October, sales are up just 3 percent.
      Ford is trying to move the timing of Lincoln production to sometime before late 2019. According to Falotico, moving the timing slightly would be a big help. The first model that would be part of this plan is the recently introduced Aviator.
      Also under consideration is Lincoln plans to export some Chinese-built models to the U.S. Falotico said the brand would likely build the same models in both countries.
      Source: Bloomberg (Subscription Required)

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×