Wednesday, 17 Oct 2018
Business

PSA wants 3,700 job cuts at Opel

The historic Eisenach factory, which employs 1,800 people, seems to be the most threatened.

Opel’s cost-saving measures are clarified: Wolfgang Schäfer-Klug, chairman of the German brand’s board of directors, revealed on Friday that his new owner, the PSA group, was demanding the removal by 2020 of of 3700 of the 20.000 posts which counts the mark in Germany as part of a voluntary departure program.

“About 2000 people have agreed to leave and it is likely that 2000 additional people will accept departure plans,” said Wolfgang Schäfer-Klug. A voluntary redundancy plan is still underway, which should further increase the number of job cuts. As early as October, the group led by Carlos Tavares had eliminated 400 of the 2000 jobs at the Vauxhall plant, another Opel European brand, Ellesmere Port in Great Britain . The works council and the German union IG Metall are to discuss with the Opel and PSA management the future of the three German production sites.

The historic Eisenach factory, which employs 1,800 people, seems to be the most threatened. These drastic measures were expected. Purchased last year to the American General Motors (GM) for 2.6 billion dollars (2.1 billion euros), Opel is no longer profitable for twenty years. PSA hopes to quickly recover the firm since the return to profitability is expected in 2020.

German Chancellor Angela Merkel intervened on this issue, asking PSA boss Carlos Tavares to respect the commitments to maintain the job taken in 2017 when the builder was bought from GM.

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