Report: GM Wants to Shift Some Peugeot Production to Germany

Aug. 13, 2012
General Motorswants it to shift some production to GM's troubled German unit Opel, a German daily reported. In an internal production plan, GM wants production of the Citroen DS5 and the Peugeot 508 shifted to Opel's Ruesselheim factory in Germany, the Frankfurter Allgemeine Zeitung reports in its Saturday edition. A Peugeot spokesman told FAZ that the report was speculation.

General Motors Co. (IW 1000/13), which holds a 7% stake in French automaker PSA Peugeot Citroen (IW 1000/43), wants it to shift some production to GM's troubled German unit Opel, a German daily reported.

In an internal production plan, GM wants production of the Citroen DS5 and the Peugeot 508 shifted to Opel's Ruesselheim factory in Germany, the Frankfurter Allgemeine Zeitung reports in its Saturday edition.

A Peugeot spokesman told FAZ that the report was speculation, noting that GM and Peugeot are still working out how the alliance they agreed to in February will actually work.

European automakers, including Peugeot and Opel, are under intense pressure to eliminate their overcapacity.

But with growth slowing in the eurozone, job cuts will become even more politically difficult and shifting jobs between countries a possibly explosive issue.

Peugeot's, which lost 819 million euros ($1 billion) in the first half of 2012, announced in July that it intends to cut 8,000 jobs.

GM suffered $656 million in losses in Europe in the first half of the year.

In June, Opel adopted a massive restructuring plan, but so far unions have succeeded in keeping the company from cutting jobs and closing any factories.

Copyright Agence France-Presse, 2012   

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!