PSA Group’s German car-making division Opel will cut up to 4,100 jobs, joining rivals around the globe in retrenching amid a sales slowdown and technological disruption.
The cuts will be focused at German factories in Ruesselsheim, Eisenach and Kaiserslautern, where Opel will reopen a voluntary leave program for employees to eliminate 2,100 positions by 2025, the company said in a statement Tuesday.
Additionally, the carmaker agreed with labor representatives to have the option to cut another 2,000 positions in two tranches through 2029, a spokesman said.
“This agreement creates a further considerable improvement of our competitiveness,” Opel CEO Michael Lohscheller said in the statement.
Opel also said it had decided to invest further in the Ruesselsheim plant, where it will manufacture the next generation of the Opel Astra starting in 2021 as a five-door car and from 2022 as a station wagon. It said that decision was due to improvement in the plant's performance.
Opel’s workforce stands at roughly 30,000 employees, including more than 16,000 in Germany.
While PSA breathed life into Opel after acquiring the company from General Motors in 2017, German brands have been struggling to prove they’re ready to meet stricter emissions standards, which are almost impossible to meet without electric cars.
PSA got rid of a load of 2,000 Opel design staff 2018, 700 Opel design jobs were saved that got moved absorbed into French design services company Segula, and 3,700 lost thier jobs in Germany in 2017.
$25 billion losers Opel's Groups European market share has continued to plummet every year since they left GM, Opel left GM with $7 billions of Opel Group pension scheme debts ,to pay down as their departing present, in return PSA paid GM $2.4 billion.
PSA now face 5.3 billion Euros European Union C02 emission fines lions share is high Opel's C02 emissions fines, so PSA want Opel to move to become high price EV car maker that is not a good idea when you have the highest paid in the world German autoworker assembling them.
Carlos Tavares PSA CEO to his credit is not afraid of tackling very strong German trade unions unlike GM who seemed afraid done nothing to address two decades of constant multi billion losses every year, Tavares does not want high paid German Opel assembling EV with wafer thin profit margins which would be a recipe for disaster