Opel has confirmed it will concentrate future Astra production across just two sites working three shifts at the same time as firing a broadside across its Russelsheim factory’s bows.
Intense lobbying from Astra-producing plants in the UK, Germany and Poland has nonetheless still left undecided where final manufacturing will be, but speculation has centred on Russelsheim losing out to Ellesmere Port and Gliwice for the EUR300m (US$385m) investment.
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“The clear goal here is to run each of the plants on three shifts,” said Opel/Vauxhall CEO Karl-Friedrich Stracke. “The first example of that will be seen in conjunction with the allocation of the next Astra generation.
“Given the forecasted market volumes, it would not be viable to produce in more than two plants. If we run these two plants with three shifts, the production costs for the next Astra generation will be significantly below the costs of building the current Astra.
“Right now we’re operating three plants with just two shifts.” Opel/Vauxhall is planning on investing more than €300 million in the two future Astra plants.
Stracke added Opel was talking to head office in Detroit and management in Shanghai to study the merits or otherwise of manufacturing Chevrolet vehicles in Europe to improve capacity usage.
Stracke also addressed the controversial issue of Opel entering new markets – long a bone of contention from Opel’s powerful unions who view it as a way to boost production – citing Australia, South America and the Middle East as potential opportunities.
“We’ve already successfully introduced Opel to the market in Israel and we’ll expand our activities in China, Russia and Turkey,” he said.
“The Opel/Vauxhall CEO made it clear exports to regions outside Europe, however, won’t be enough to operate the European factories at full capacity. “We have to do our homework here in Europe,” he noted.
In a raft of other initiatives, Stracke also said Opel would enter new segments where it had not been previously represented such as the sub-compact SUV Mokka, while producing a new Astra version, a convertible and the Adam, to be built at Eisenach.
Stracke also addressed the thorny issue of alliances that has exercised unions nervous about the potential job implications following the recent tie-up with PSA Peugeot Citroen.
“At the moment we’re at a stage where we’re studying several specific projects with PSA in detail,” said Stracke. “If we decide to move an Opel/Vauxhall development project to PSA, then we’ll balance it by bringing a PSA project to Rüsselsheim.”
Stracke claimed no jobs would be lost in the International Technical Development Centre in Rüsselsheim because of the alliance.
The Opel/Vauxhall CEO said the full growth plan would be presented to the Opel Supervisory Board next month: “It is not a cost-cutting plan at all,” he said.
“It is much rather a comprehensive plan to quickly improve profitability, irrespective of if and how much the market is going to pick up steam. The plan will allow us to significantly increase our margins, market share and sales.”
However, the Opel/Vauxhall chief fired a broadside across Russelsheim’s bows noting: “I want to run this plant on full capacity.
“But Rüsselsheim also has to remain competitive, and so we have to increase flexibility and significantly reduce our costs per vehicle.”
Stracke added Opel will stick to existing agreements, such as the existing labour agreement up to 2014.
Opel/Vauxhall will introduce three new engine generations during the next 18 months.
