GM may close Opel’s German plant by 2015 and shift to low-cost plants

Article by Anita Panait, on March 26, 2012

General Motors Co. may shut down its production lines in the United Kingdom and Germany and shift them to low-cost countries like Mexico, Korea and China, Russia and Poland, German magazine Der Spiegel said quoting an internal strategy document entitled "Global Assembly Footprint.” 

According to Der Spiegel, citing the internal strategy document, the company would build additional vehicles in low-cost countries if car sales increase, while closing its factories in Ellesmere Port, UK and Bochum, Germany. Der Spiegel added that the document outlined a plan by GM to export an additional 300,000 vehicles to Europe from its sites in Mexico, Korea and China by 2016.

The company may close its Bochum site in 2016 but it will intensify production at its Gliwice plant in Poland by 25%. The Polish plant assembled 158,579 units of the Astra compact car and Zafira minivan in 2011.

With regards to reports that the company will transfer Opel’s car production out of Germany, a spokesman for GM in Europe said that the auto manufacturer has yet to decide on the matter.

A spokesman for Opel, meanwhile, said that GM would always grab opportunities that come up in the worldwide automotive market. Opel chief executive officer Karl-Friedrich Stracke, meanwhile, was reported by German daily Bild as saying that he dismissed plant closures and job cuts only in the near term. Stracke, however, said that Opel will not be limiting its efforts to become more profitable in the future.

The statements were spurred by reports by the German WAZ group of newspapers, citing government sources, that Stracke had informed German government about Opel plans to close its Bochum site.  The newspapers added that Stracke will meet with the workers union on Monday.  Stracke has assured that the plants were not primed for closures at least until the end of 2014. A spokeswoman for Germany's Economy Ministry said the government is monitoring the situation closely with Opel’s management.

Topics: gm, opel

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries