PSA-owned Opel has threatened to cut investment in a Spanish plant after it failed to reach a deal with unions on pay and conditions.

The next Opel Corsa model could be made elsewhere if an agreement cannot be reached, an Opel spokesperson told Reuters.

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The spokesperson also told Reuters that the plant is at a competitive disadvantage compared to other PSA factories in Spain. The company's representatives have been talking with the labour unions at the plant for months.

Production of the next series of Opel's Corsa, which has been made in Zaragoza since 1993, could be moved to another factory if an accord cannot be reached, the spokeswoman told Reuters.

The report added that the regional government has called for an urgent meeting with Opel.

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