GERMANY: General Motors to end Bochum car output in 2016
- Warehouse to remain and "probably" to be expanded
- New component production "could" be allocated to plant
- Initiative Bochum Perspective 2022 to secure existing and create new jobs
- Aiming for no forced redundancies before run-out of current Zafira
- "Attractive" separation packages
- Germany remains "backbone and home of Opel"
- End of assembly part of long-term Drive! 2022 plan
Last June, Opel had announced no successor to the current model was planned to be allocated to Bochum in view of the shrinking European car market and overcapacity in the European auto industry.
"Despite intensive efforts this situation could not be changed," GM said in a statement.
The warehouse in Bochum will continue operating beyond 2016 and "could be expanded". Opel is also negotiating with employee representatives over allocating more component production to Bochum.
Separately, a working group called Bochum Perspective 2022, recently established by Opel, is looking at site development opportunities "to secure existing jobs and create new ones in the city of Bochum and the entire Ruhr region".
Opel will support the project with finance and staff.
“Building on [that], we have a clear goal for securing a significant number of... jobs at Adam Opel. They include positions in our warehouses and potentially component production. Opel takes its responsibility seriously and will implement still-necessary job reductions in the most socially responsible way. The goal of our negotiations with the works council is to refrain from forced redundancies before the run-out of the current Zafira,” said GM's vice chairman Steve Girsky, who also chairs the Opel supervisory board and is acting president of GM Europe.
"Germany is our most important market and, with about 20,000 employees, the backbone and home of our brand. And this will stay this way in the future,” Opel Deputy CEO Thomas Sedran added.
Drive Opel 2022 targets break-even results by mid-decade. Opel plans to increase its revenue and variable profit "significantly" by more cost-efficiency, new marketing strategy, improving brand image, boosting market share and entering new markets [such as the recent launch in Australia] and segments. From 2012 to 2016, Opel will launch 23 new models and 13 new engines.
Opel plans to end car production in Bochum in 2016
Warehouse to remain in Bochum and probably to be expanded
New component production could be allocated in Bochum
Initiative „Bochum Perspective 2022“ to secure existing and create new jobs
Goal: No forced redundancies before run-out of current Zafira
Attractive separation packages
Germany stays backbone and home of Opel
Announcement is part of long-term plan “Drive! 2022”
Ruesselsheim. Adam Opel AG management today informed its employees that vehicle production is planned to end in Bochum at the end of the current Zafira lifecycle – expected in 2016. In June, Opel announced that no successor to the current Zafira is planned to be allocated in Bochum in view of the shrinking European car market and the overcapacities in the automotive industry. Despite intensive efforts this situation could not be changed.
The warehouse in Bochum will continue to offer jobs beyond 2016 and could be expanded. Additionally, Opel is negotiating with the employee representatives to allocate a new component production in Bochum. On top of this, the working group “Bochum Perspective 2022”, which was recently established by Opel, has the objective to focus on site development, to secure existing jobs and create new ones in the City of Bochum and the entire Ruhr region. “Bochum Perspective 2022” is composed of representatives of local and regional government, along with leaders and innovators from labor, industry, academia and financial institutions located in North Rhine-Westphalia. Opel will support the initiative financially and personnel-wise.
“Building on the Bochum Perspective 2022, we have a clear goal for securing a significant number of tariff-bound jobs at Adam Opel AG. They include positions in our warehouses and potentially component production. Opel takes its responsibility seriously and will implement still-necessary job reductions in the most socially responsible way. The goal of our negotiations with the works council is to refrain from forced redundancies before the run-out of the current Zafira,” said Steve Girsky, GM Vice Chairman, Chairman of the Opel Supervisory Board and Acting President of GM Europe.
"Germany is our most important market and with about 20,000 employees the backbone and home of our brand. And this will stay this way in the future,” Opel Deputy CEO Dr. Thomas Sedran said. Opel also has the responsibility for its independent dealers; in North-Rhine-Westphalia alone there are 320 Opel dealers who employ about 5,300 employees.
This move is part of the company’s long term plan “Drive Opel 2022” which targets break-even results by mid-decade. Opel plans to increase its revenue and variable profit significantly by more cost-efficiency, re-focusing its go-to-market strategy, improving the image of the Opel brand, strengthening the quality of market share and entering new markets and segments. From 2012 to 2016, Opel will launch 23 new models and 13 new engines in total.
Original source: http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/intl/en/2012/opel/12_10_end-of-car-production-in-bochum-2016.html
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