Despite reports to the contrary, Britain’s exit from the European Union — or Brexit — continues to affect operations across the world. The latest example is the decision by GM subsidiary, Opel, to cut back hours at its German manufacturing plants as a result of Brexit.
According to Reuters, lower demand for the Corsa and Insignia were major contributors to the decision, likely stemming from a less enthused consumer base to purchase new vehicles.
“We can confirm that there will be short-time work in the plants in Ruesselsheim and Eisenach during the course of this year,” Opel said in a statement, adding that the number of days when shorter working hours apply will depend on the sales volume of the Insignia and the Corsa in the United Kingdom.”
“The Brexit situation is an issue for everybody who does business in and with the UK at the moment and we already announced last month that there will be an impact on our European financial performance if the value of the pound remains at its current level for the rest of the year,” Opel stated.
The impact of Brexit will continue to unfold as analysts fear it could lead to the closure of Vauxhall’s Ellesmere Port manufacturing facility.