General Motors is planning to shift its production to German unit Opel. The manufacturer already holds a stake of 7 percent in PSA Peugeot Citroen, a French car manufacturer.
German unit Opel seems to be facing a lot of troubles due to which GM has planned to shift the production. As per the internal production plan, General Motors wants Peugeot 508 and Citroen DS5 to be produced at Opel’s Ruesselheim factory which is located in Germany. Both Peugeot and GM are planning on how to start the work in alliance starting from February. As of now, both European manufacturer’s Opel and Peugeot are under complete pressure to get rid of their overburdened schedules.
However, the slow growth of economy in Europe could mean more job cuts and job shifting among countries. As per July reports, Peugeot has already lost a total of 819 million euros in the first half of 2012 with around 8000 job cuts. Not only Peogeot, but General motors has to face $656 million loss in Europe in the first half of 2012 and so did Opel that adopted a massive restructuring plan in June.