Employees unsettled by Opel sell-off rumours

The chief representative of employees at German carmaker Opel has called on parent company General Motors to put an end to rumours that it is considering selling off its European unit.

Employees unsettled by Opel sell-off rumours
Image Source: DPA

Workers council chairman Rainer Einenkel said Saturday that the US automaker should “deny it has any plans to sell, with no ifs or buts,” adding “soft statements help neither the employees nor the reputation of our product.”

His demand follows several days of rumours and media reports that the Detroit auto giant is contemplating selling off Opel.

German automotive magazine Auto Bild, citing unnamed sources, reported Thursday that General Motors executives were frustrated that Opel is still making a loss and were looking at the possibility of selling it. Der Spiegel reported that Volkswagen and a Chinese carmaker were being considered as possible buyers.

Opel has major plants in Rüsselsheim, near Frankfurt, as well as in Bochum, Eisenach and Kaiserslautern. As recently as May, the company and workers representatives in Bochum had agreed on a plan to reduce the payroll by 1,800 jobs, as part of GM’s overall plans to cut employment at its European units by some 8,000.

Chancellor Angela Merkel has voiced her concern about the rumour and asked GM to clarify its plans for its German-headquartered European unit. According to her spokesman Steffen Seibert, the reports were “upsetting” for Opel’s hard-working employees. “They deserve that their performance be appreciated and that they be given some security about the future,” he said Friday.

In 2009 GM had put Opel up for sale but withdrew from a deal with Canadian-Austrian auto parts maker Magna at the last minute.

On Saturday Die Weltnewspaper cited unnamed company sources as saying China’s Beijing Automotive Industry Holding Co (BAIC), among the bidders in 2009, had approached GM’s management with an offer. Advisers close to BAIC, however, told Reuters news agency that no formal offer had been made.

BAIC President Wang Dazong, an engineer who spent 20 years working at GM, has said the company is aiming to expand outside its Chinese home market.

The Local/DPA/smd

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From lizards to water, eco-bumps snag Tesla’s giant Berlin car factory

In the green forest outside Berlin, a David and Goliath-style battle is playing out between electric carmaker Tesla and environmental campaigners who want to stop its planned "gigafactory".

From lizards to water, eco-bumps snag Tesla's giant Berlin car factory
Tesla's gigafactory outside the doors of Berlin. dpa-Zentralbild | Patrick Pleul

“When I saw on TV that the Tesla factory was going to be built here, I couldn’t believe it,” said Steffen Schorch, driving his trusty German-made car.

The 60-year-old from Erkner village in the Berlin commuter belt has become one of the faces of the fight against the US auto giant’s first European factory, due to open in the Brandenburg region near Berlin in July.

“Tesla needs far too much water, and the region does not have this water,” said the environmental activist, a local representative of the Nabu ecologist campaign group.

Announced in November 2019, Tesla’s gigafactory project was warmly welcomed as an endorsement of the “Made in Germany” quality mark – but was immediately met with opposition from local residents.

Demonstrations, legal action, open letters – residents have done everything in their power to delay the project, supported by powerful
environmental campaign groups Nabu and Gruene Liga.

Tesla was forced to temporarily suspend forest clearing last year after campaigners won an injunction over threats to the habitats of resident lizards and snakes during their winter slumber.

READ MORE: Is Germany’s Volkswagen becoming ‘the new Tesla’ as it ramps up e-vehicle production?

And now they have focused their attention on water consumption – which could reach up to 3.6 million cubic metres a year, or around 30 percent of the region’s available supply, according to the ZDF public broadcaster.

The extra demand could place a huge burden on a region already affected by water shortages and hit by summer droughts for the past three years.

Local residents and environmentalists are also concerned about the impact on the wetlands, an important source of biodiversity in the region.

Tesla Street

“The water situation is bad, and will get worse,” Heiko Baschin, a spokesman for the neighbourhood association IG Freienbrink, told AFP.

Brandenburg’s environment minister Axel Vogel sought to play down the issue, saying in March that “capacity has not been exceeded for now”.

But the authorities admit that “the impact of droughts is significant” and have set up a working group to examine the issue in the long term.

The gigafactory is set to sprawl over 300 hectares – equivalent to approximately 560 football fields – southwest of the German capital.

Tesla is aiming to produce 500,000 electric vehicles a year at the plant, which will also be home to “the largest battery factory in the world”,
according to group boss Elon Musk.

In a little over a year and a half, swathes of coniferous forest have already been cleared to make way for vast concrete rectangles on a red earth base, accessed via the already iconic Tesla Strasse (Tesla Street).

German bureaucracy

The new site still has only provisional construction permits, but Tesla has been authorised by local officials to begin work at its own risk.

Final approval depends on an assessment of the project’s environmental impact – including the issue of water.

In theory, if approval is not granted, Tesla will have to dismantle the entire complex at its own expense.

But “pressure is being exerted (on the regulatory authorities), linked to Tesla’s significant investment”, Gruene Liga’s Michael Greschow told AFP.

In early April, Tesla said it was “irritated” by the slow pace of German bureaucracy, calling for exceptions to the rules for projects that help the environment.

Economy Minister Peter Altmaier agreed in April that his government “had not done enough” to reduce bureaucracy, lauding the gigafactory as a “very important project”.

Despite Germany’s reputation for efficiency, major infrastructure projects are often held up by bureaucracy criticised as excessive by the business community.

Among the most embarrassing examples are Berlin’s new airport which opened last October after an eight-year delay and Stuttgart’s new train station, which has been under construction since 2010.

Brandenburg’s economy minister, Joerg Steinbach, raised the possibility in February that the Tesla factory could be delayed beyond its July planned opening for the same reason.

SEE ALSO: Tesla advertises over 300 jobs for new Gigafactory near Berlin