Opel Denies Rumors on Closing Eisenach Plant image

GM denied it was considering selling its Eisenach plant in Germany, where it builds the Corsa and plans to begin production for the Junior small car this year.

It was rumored that the company would seek an investor for the plant, but Opel reacted immediately with a response.

“This speculation is without base and is wrong. There are no plans to sell the Eisenach plant,” the company said in a statement on Thursday, March 27th.

Eisenach plant produced 139,185 Corsas in 2011 and will soon add production for the Junior mini car. recently Opel cut production working hours from 38 to 30 until the summer, when pre-launch production slowly begins for the Junior, and GM CEO Dan Akerson also makes pressure to cut excess capacity believing that 10 plants are too many when economic weakness across Europe hits car sales.

Although plants at Bochum in Germany and Ellesmere Port, England, are most at risk of closure, Opel’s supervisory board avoided to take any decision on restructuring measures. Opel invested 190 million euros ($252 million) in 2011 to expand Eisenach, the biggest investment since the plant began production 20 years ago, to increase the number of components built in-house.