General Motors’ European subsidiary is planning to cut hundreds of jobs in product engineering in Germany, Automotive News Europe announces.
The cuts are requested by GM, which is increasingly pressuring Opel to reduce its costs in order to return to profitability. Subsequently, Opel plans to cut as much as 1,420 product engineering jobs at its technical development center in Russelsheim in order to reduce labor costs. The news came via an internal letter drawn up by the IG Metall union and obtained by Automotive News Europe.
The cost-cutting information was commented by an Opel spokesman, who said the number mentioned by IG Metall is “factually wrong and excessively high”, as it includes people who are not on Opel’s payroll, such as supplier employees and employees of service providers. The official declined to give a more accurate figure for the number of job cuts, but said Opel will need fewer employees as a result of plans to improve efficiency in product development.
The spokesman added that Opel’s plan focuses on three areas: a stronger concentration on the automaker’s core development mission and a reduction in project coordination tasks, increase use of modules and construction kits and a deeper, earlier integration of suppliers.