Industryweek 4228 Opel2002 0

Opel to Shut Down All Activities in Bochum

April 26, 2013
"Opel will shut down its three factories at Bochum," a spokesman for Opel's Bochum site said.

FRANKFURT — German carmaker Opel, the loss-making arm of General Motors (IW 500/4), said Friday it will phase out not only auto production at its site in Bochum, western Germany, as previously announced, but other activities as well.

"Opel will shut down its three factories at Bochum," a spokesman for Opel's Bochum site said.

Currently, more than 3,000 people are employed in the assembly of the group's Zafira model at Bochum.

But there is also a logistics center at the site, employing 420 people, and an engine factory with a workforce of 300.

Under a deal worked out by GM at the end of February, Opel had offered to keep car production in Bochum until the end of 2016 after which the plant would be retained as a components and logistics site employing 1,200 people.

But workers at the plant rejected the deal and so management said that auto production would be phased out at the end of 2014.

Opel has three other sites in Germany -- in Eisenach in eastern Germany, which builds the Corsa and Adam models; a components factory in Kaiserslautern in the south west; and the core production plant at Ruesselsheim, near Frankfurt.

GM estimates it stands to lose more than $1.5 billion on its European operations this year and wants to steer Opel and its British sister brand Vauxhall back to profit by 2015.

Opel and Vauxhall are heavily dependent on the European market where industry-wide sales of passenger cars fell 8.2% in 2012, according to data published by the European automobile makers' association.

GM has announced it will invest four billion euros in Opel and British sister brand Vauxhall by 2016.

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

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

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Voice your opinion!

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