IMPACT: GM Opel may sell Eisenach plant image

The uncertainty continues for thousands of workers at Opel and Vauxhall.

The management of General Motors’ Opel unit and worker representatives said after a meeting Wednesday that they would continue to discuss ways to make the carmaker profitable again.

However, German newspaper Handelsblatt reports that GM is considering the sale of its Eisenach plant in Germany where it manufactures the Corsa model.

The business daily cited a person familiar with the situation as saying it was conceivable that an investor for the plant could be sought.

Opel, which uses the brand name Vauxhall in Britain, has a surplus of production capacity that makes it very difficult for the company to sell cars profitably, especially when the European car market is shrinking.

There are seven plants in Europe. Three in Germany, two in Britain, one in Spain and one in Poland.
Last year the 19,600 workers produced 1.27 million cars and vans.

Opel’s own Antwerp plant, Fiat’s woefully uneconomical Sicilian plant, and the Trollhattan factory of insolvent carmaker Saab, were shut down in the past two years, and Mitsubishi is ending car production in its Netherlands facility by year-end.