General Motors European unit Opel is talking with union IG Metall and works councils about extending a deal to avoid compulsory layoffs from 2014 to 2016 and delay a 2012 wage rise agreement.
Talks also include finding a way to keep the Bochum plant open until the run-out of the recently launched Zafira Tourer which just-auto expects will be in 2018. The plant was expected to be closed in 2015.
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GM said its management and works councils would discuss future use of Rüsselsheim, Eisenach and Kaiserslautern and the future of the Bochum plants – there are separate car and transmission factories several kilometres apart.
But GM warned Bochum is currently doomed: “Given the present economic environment and anticipated future demand, the current management plan, subject to consultation, will not allocate further product to the Bochum site after the run-out of the current Zafira,” it said in a statement.
GM, the union and works councils will continue talks in the following weeks to reach agreement. The goal, GM said, is not only to reduce costs but also to reduce the dependence from importing cars and components.
“This could also include the production of non-Opel vehicles in European plants.”
At a meeting on 28 June, Opel’s supervisory board will vote on:
- Significant investments in the Opel/Vauxhall product portfolio between 2012 and 2016, including 23 new models, 13 new powertrains (including three all-new engine families) and more vehicles with green propulsion, like the Ampera. New products will include models in segments where Opel is currently not present such as the small Mokka SUV, the lifestyle mini Adam and a premium convertible.
- A new product offensive, combined with new sales strategies, which is expected to lead to market share growth. Any growth in market share is intended to complement Opel’s plan to return to profitability through greater operational efficiency and cost reduction.
- Developing a new, clear brand strategy that is geared toward both traditional and attainable potential customers and that leads to a more defined brand perception.
- Clearly defined plans aimed at reducing material, development and production costs. Opel will more effectively leverage the global GM organisation. Opel also sees great synergies stemming from the recently formed alliance between GM and PSA Peugeot Citroën.
- A coordinated and clearly defined export strategy in the GM family focusing on important growth markets. This includes plans for rapid market share growth in markets such as Russia and Turkey, a strategy to go from 5,000 to 20,000 annual Opel sales in China in the coming years, and entering further markets such as Australia in the fourth quarter of this year.
Opel CEO, Karl-Friedrich Stracke, said: “We must work towards sustainable positive results for our operations in Germany. Opel needs to adjust its business in a way that enables profitability even in difficult market conditions. With 2012 industry volumes expected to be down 20% from demand in the past five years, waiting longer to act would be irresponsible.”
”Opel works council chairman Wolfgang Schaefer-Klug said: “The Opel works council members are ready to support the strengthening of the brand. The main points of the proposed business plan go in the right direction but we will still need to hold talks concerning many of them. The readiness of the management to talk about excluding compulsory separations until end 2016 for all German plants was a necessary precondition for this.”
Our goal is to come to a common solution for Opel and all employees. Opel has huge potential – and we must leverage it together. People at Opel would like to make positive headlines even in difficult market conditions.”
Berthold Huber, chairman of IG Metall, said: “We expect of management that this is not just lip service but that GM and the Opel management board will support their plans with the necessary investments. We request a perspective for the employees at each site. This is about the big picture, i.e. the future of Opel.”
Opel insisted it remains committed to its German heritage. Approximately half of investment between now and 2016 will focus on operations in Germany, where it employs 20,800 people, and 40,000 across Europe.
