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Opel cuts car production at Bochum plant
Photo: DPA

Opel cuts car production at Bochum plant

Published: 10 Dec 2012 10:09 GMT+01:00
Updated: 10 Dec 2012 14:02 GMT+01:00

Opel, the loss-making German arm of US auto giant General Motors, said on Monday it would halt auto production at its Bochum plant in 2016 but pledged to keep it running as a parts distribution centre.

"Opel management has today informed the workforce that full vehicle production at the Bochum plant will be discontinued after production of the Zafira model is scheduled to cease in 2016," the statement said.

Opel had already announced in June that it would stop building Zafira cars in Bochum in 2016.

"The main reasons behind this decision are the dramatic decline in the European car market and the enormous overcapacity in the entire industry," Opel explained. Despite "intensive efforts, we have been unable to change this situation."

On Friday, the works committee had said the decision could mean the entire site might be shut down with the potential loss of up to 3,000 jobs.

But management insisted that would not be the case and that although vehicle production would cease, Bochum would be used as a parts distribution centre after that date.

Indeed, in its new function, the plant could even be expanded as part of an initiative to secure existing jobs at Bochum and even create new ones.

"It is our clear intention to safeguard the jobs of a significant number of Opel employees in Bochum, said head of GM Europe Steve Girsky.

"Germany is our most important market and, with around 20,000 employees, the backbone and home of our brand. That will remain true in the future," said Opel deputy chief Thomas Sedran.

Several hundreds of jobs are allegedly set to be created in the new parts distribution centre, but a company spokesman declined to confirm the figure. "Everything is still being negotiated."

GM estimates it stands to lose more than €1.2 billion on its European operations this year and wants to steer Opel and its British sister brand Vauxhall back to profit by 2015.

Opel and Vauxhall are heavily dependent on the European market where industry-wide sales fell by 15 percent in the first nine months, according to data published by the European automobile makers' association.

The German government expressed "great regret" at Opel's decision to cease vehicle production at Bochum.

"That's a terrible blow for the people affected and their families, as well as for Bochum as an industrial site," said government spokesman Georg Streiter.

"The government regards Opel as a key company in the German automobile sector and expects the parent company General Motors to undertake everything to reach a solution that is socially acceptable," Streiter told a regular news briefing in Berlin.

He said the government welcomed Opel's intention to retain and expand Bochum into a logistics centre.

AFP/DAPD/The Local/jcw

The Local (news@thelocal.de)

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16:50 December 10, 2012 by Berlin fuer alles
Now is the winter of our discontent

Made glorious summer by this sun of York;

And all the clouds that lour'd upon our house

In the deep bosom of the ocean buried.

Three cheers for Angie and her banking buddies.
06:22 December 15, 2012 by the Anonymous Designer
Conservatives in America are claiming General Motors would be in better shape and regained it's footing faster were it to have been left to the Private Sector to save rather than being bailed out by the government.

Germany is often used and pointed to as a model for Conservative Austerity policy success over here in the States. So, how is Opel doing?
08:58 December 18, 2012 by honeybeee
It is definitely a bad news ,but it's not that bad enough to be very negative toward it. Because the site still can be reserved to be operated as a logistics distribution center there. And for Berlin fuer alles, buddie, U really cant blame all bad situations to our dearest Angie coz it¦#39;s really unfair and she is not possible a superwoman ,but just a humble granny chancellor to try to do her responsibility at this critical moment.Maybe we all need to keep a positive outlooking for all the car industry coz some is still performing very well in this harsh winter . You do look at Continental Ag , for this car-parts maker ,which is doing great in this whole 2012 year and reflects very well on DAX index to give much confidence toward his investors including his biggest shareholder Schaeffler AG as well.
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