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November 02, 2021 03:52 AM

Opel's German factories will be retained, CEO says

Competitiveness of the plants 'needs to be re-assessed'

Nathan Eddy
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    Opel Uwe Hochgeschurtz with Astra

    Opel CEO Uwe Hochgeschurtz stands next to the new Astra. Production of the compact car begins this autumn in Ruesselsheim, with the first deliveries due at the start of next year.

    Opel's factories in Germany are not under threat of closure, the brand's CEO, Uwe Hochgeschurtz, said.

    "We are keeping all the plants. Ruesselsheim, Eisenach and Kaiserslautern are and will remain our factories in Germany," Hochgeschurtz told Germany's Frankfurter Allgemeine Zeitung newspaper in an interview.

    However, the competitiveness of the plants would have to be re-assessed, Hochgeschurtz added.

    In January, Opel became part of Stellantis, which was formed from the merger of its owner, PSA Group, and Fiat Chrysler Automobiles. German press reports have speculated about the future of Opel's German factories because of the new group's overcapacity in Europe.

    Hochgeschurtz said Opel, with its 15,000 employees, is "fit for the future as never before in this millennium.”

    At the same time, he said Opel would have to continue to change.

    "We will need fewer jobs with mechanical skills, but more that have to do with chemistry or software," Hochgeschurtz said, referring to the shift toward connected, electrified vehicles.

    He noted that an electric car needs less and different work in development and production than a model with an internal combustion engine. Opel said in July that it will become an electric-only brand in Europe by 2028.

    The future of Opel's plant in Eisenach is causing concern among the automaker's labor leaders because production there is at a standstill until year-end due to a lack of microchips.

    However, Hochgeschurtz dismissed concerns that production might not be restarted.

    "Our plan is still to resume production at the beginning of next year, if the supply situation permits," he told the Frankfurter Allgemeine Zeitung.

    Opel is the only German brand in the Stellantis car group, which includes the Fiat, Peugeot and Citroen brands.

    After PSA bought Opel from General Motors in 2017, thousands of jobs were cut at Opel. Compulsory layoffs, however, were ruled out until summer 2025.

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