Opel is continuing to seek partners for its under-utilised component plant in Kaiserslautern.

According to Automobilwoche, negotiations are on-going between GM Europe and German supplier Kirchhoff regarding the possible sale of the plant.

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GM Europe management has been seeking a partner for the component plant for over five years, but a sale to Kirchhoff has been stalled by works council objections that it would hive off a large proportion of employees into service companies, rather than take over the complete workforce.

However, GM Europe is convinced that Kirchhoff is the only company interested in acquiring the plant. Workers and management have been trying to improve productivity to improve the cost structure of the plant and make it more attractive to suppliers, but to no avail. Furthermore, GM Europe management is not interested in a sale ‘at any price’.

Chairman of the Opel works council Klaus Franz has said that the workforce would be prepared to work with a new partner, but again, not ‘at any price’. Franz said he could imagine a joint venture working well. “Then Kaiserslautern could take on contracts from third parties.”

Franz concluded that a decision needs to be made before the end of this year.