Opel is planning to start manufacturing a compact car for French parent PSA at its main Ruesselsheim plant from mid-2021 onwards, German business daily Handelsblatt reported, citing company sources.

The car will be based on PSA's EMP2 vehicle platform, the paper reported, according to Reuters, saying the move could be officially announced in the coming days.

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Production at Ruesselsheim, where Opel manufactures the Insignia, is currently halted due to the coronavirus pandemic. The next generation Astra will also be made there.

Asked about the report, an Opel spokesman told Reuters in a written response: "We will shortly give detailed information on investments at the Ruesselsheim site and a new vehicle allocation.

"This is aimed at focusing on vehicle production with a higher volume." 

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