GM dismisses report that Opel will build PSA Peugeot Citroen vehicles in Germany image

General Motors’ Opel unit dismissed as speculation a report from Frankfurter Allgemeine Zeitung newspaper that it will build Peugeot and Citroen midsized cars at its factory in Ruesselsheim, Germany.

The report cites unidentified labor union sources as saying Opel wants to offer severance packages to cut 1,500 jobs each at Ruesselsheim and at its Spanish plant in Zaragoza to reduce costs.

“The press report according to which there are plans to build Peugeot and Citroen models in Rüsselsheim, is pure speculation.
Manufacturing is currently not subject of the alliance between GM and PSA.
The partners are talking about logistics, purchasing and engineering,” a GM spokesperson told inautonews.com

PSA/Peugeot-Citroen declined to comment.

The C5 and 508 are built in PSA’s factory in Rennes, France. Ruesselsheim builds mid-sized Insignia and Astra compact models

Union officials in France have long maintained that Rennes will be closed, and point to a dwindling workforce – cut in half from just three years ago – as evidence that PSA plans to shutter the plant.

Peugeot and Citroën, the Group sold 3.5 million vehicles worldwide in 2011, out of which 42% outside Europe.