Opel to reduce product engineering positions in German facility

Article by Christian A., on December 20, 2011

Opel intends to slash hundreds of jobs in product engineering in Germany, according to an internal letter obtained by Automotive News Europe and drawn up by the IG Metall union. Specifically, the company will cut at most 1,420 product engineering posts at its international technical development facility in Ruesselsheim, near Frankfurt.

The reduction come as parent company General Motors Co. pushes its European subsidiary to cut costs even more to make sure that the money-losing unit returns to profitability despite the European market going on a recession.

However, a spokesperson for Opel informed ANE that the figure disclosed by IG Metall is "factually wrong and excessively high" because the numbers include those who are not on the company's payroll such as employees of service providers and supplier staff.

He did not provide the actual number of jobs to be cut. Instead, he said that the vehicle manufacturer will require a fewer number of employees due to plans of improving efficiency in product development.

According to the sources of ANE, at least 200 employees will be provided severance payments when 550 positions are transferred from product engineering to the manufacturing engineering department, translating into at least 750 fewer posts in product engineering.

Meanwhile, the technical center has at least 6,000 people who develop vehicles for Opel and GM worldwide. [source: Autonews]

If you liked the article, share on:

Topics: opel, germany

Comments

Recommended

Nissan is commencing sales of the 2019 Nissan Altima on October 3, 2018 in the United States. As expected, the Japanese carmaker has already divulged the details and specs of...
by - November 26, 2018
Sports utility vehicles are still in heavy demand. Ford knows this very well as the American carmaker has seen sales of its SUVs surge dramatically by 28 percent in the...
by - November 26, 2018
BMW’s European customers who are looking forward to have a new range extender version of the 2019 BMW i3 (BMW i3 REx) will have to bear a bad news from...
by - November 26, 2018
Imagining the future of automotive luxury more than three decades from now seems to be a daunting task. It would be hard for a typical person imagine such future without...
by - November 21, 2018
Can a Dacia Duster be compared with a Ford Mustang? It would be difficult to do so as these vehicles compete in different categories and segments, have different price points...
by - November 20, 2018