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December 11, 2012

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Europe's crisis prompts Opel strategy

GENERAL Motors Co's Opel unit yesterday said it plans to end car output at one plant in Germany in 2016, but a slimmed-down factory may continue to make components.

Employees at the Bochum plant in northwest Germany, one of four in the country, were told that vehicle production will end when the company stops making the current Zafira model. That was widely expected after the company unveiled a turnaround plan in June, and "despite intensive efforts this situation could not be changed," Opel said.

Opel, like several other mass-market carmakers on the continent, has been struggling amid economic gloom in Europe and overcapacity in the auto industry.

GM's warehouse in Bochum will continue operating after 2016 and may be expanded, Opel said. It also is negotiating with employee representatives to move component production to the site.



 

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