French automaker PSA Groupe is under immense pressure to turn Opel into a winning operation. As the brand’s turnaround sets off, management and staff representatives have struck a new deal to cut workers’ hours at Opel, Reuters reported on Friday.
Opel workers will see a 35-hour work week for workers who currently have agreements in place to work more, the brand said. It’s unclear how many workers the new agreement will affect, but Opel employs over 37,000 people. PSA has long signaled that the costs associated with Opel were much higher than the automaker’s other brands. Production costs were over 50 percent higher than at its French factories.
The cost-cutting measure comes amid PSA’s displeasure with General Motors over the brand’s sale. PSA alleged that GM skewed Opel’s emission issues during purchase discussions. Now, PSA is left with Opel in bad shape as new European Union regulations loom. PSA seeks a refund from GM for about half of the initial purchase price, though it hasn’t taken legal action yet.
The new agreement for shorter hours will also include an expanded part-time program for older employees and the potential for early retirements.
Comments
The quickest way PSA can make Opel profitable is to introduce the brand to North America.
There is an insatiable appetite for German vehicles in the U.S, Canada, and Mexico.
There is a insatiable taste for well established well know Germsn cars built by German owned Companies.
Not much call for German built cars by a French MFG.
Ask anyone who leases a Mercedes Benz this:
“What is the head company of Mercedes Benz?”
11/10 chance that the word “Daimler” will not pass through their mouths. Don’t overestimate consumers. Make no mistake, if they are not enthusiasts, they will not know or probably care to remember if someone told them. All PSA has to do is market the vehicles correctly.
Ask them the same of Subaru or Volvo. By and large, people only care about that badge on the steering wheel. The unseductive names of Fuji Heavy Industries or Zhejiang Geely Holding Group Co., limited illustrate this.
Did you intend to agree with me because what you wrote agrees with my argument?
PSA is experiencing buyers remorse in trying to get back some of the money that they paid for Opel; but knowing the European Union, they’ll probably force General Motors to do so or cancel the sale as this is why Donald Trump should withdraw the United States from NATO.. force Europe to spend what they actually need to on Defense instead of taking the American taxpayers for a ride.
How exactly can the EU force GM? How can they cancel the sale? What does NATO have to do with PSA? Where is the connection between EU military spending and Opel?
What the hell does this have to do with trump or NATO?
The European union needs to let psa learn their lesson be carefull of what you buy!
GM SHOULD NOT GIVE PSA ONE MORE DIME FOR TGE SALE!