Opel considers selling German plant where Corsa is built

Article by Christian Andrei, on March 30, 2012

General Motors Co.'s Opel unit is thinking about selling its Eisenach plant in Germany, where it currently manufactures its Corsa subcompact, according to German newspaper Handelsblatt, citing a source. Handelsblatt’s source said that there’s a significant possibility that Opel would sell its Eisenach to another investor.

Opel’s Eisenach plant built 139,185 Corsas in 2011, and is due to add another vehicle, a minicar codenamed the Junior, on its production lines. Opel recently slashed production at its Eisenach site by cutting the working hours from 38 hours per week to around 30 per week until the summer, when the company slowly commences the pre-launch production of the Junior.

Opel is currently under pressure from GM chief executive Dan Akerson to reduce excess capacity, as the unit prepares itself for another restructuring measure aimed at making profits. The current economic crisis in Europe has had a big impact on car sales and Akerson estimates that manufacturers across the continent have 10 plants too many.

Opel will reportedly shut down assembly plants in Ellesmere Port, England, and Bochum, Germany, but the truth is, the carmaker’s supervisory board adjourned a meeting on Wednesday without arriving at a decision on restructuring measures.

The company intends to follow the restructuring concept "Viability Plan 6," the full implementation of which would result in the simultaneous closure of its Antwerp, Belgium, and Bochum plants as well the sale of its Eisenach site.

Opel injected EUR190 million ($252 million) of fresh investment in 2011 to expand Eisenach, allowing the site to hike the number of components built in-house. The "Viability Plan 6” was conceptualized during the post-Lehman crisis but was never fully implemented.

Topics: opel, opel corsa, factory

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016