January 24, 2019 / 9:19 AM / 6 months ago

Carmaker Opel to halve production at Ruesselsheim -German paper

BERLIN, Jan 24 (Reuters) - French carmaker PSA Group’s Opel will adjust production volume at its Ruesselsheim plant in Germany this year, it said on Thursday after a newspaper reported that the company is halving the plant’s output.

Opel is cutting production at Ruesselsheim to 68,000 vehicles from 123,000 in 2018, Mainzer Allgemeine reported, citing company sources. The paper said the company’s original target 2019 target was 90,000 vehicles.

“Opel continuously adjusts production ... We want to further improve the capacity utilisation of our plants. This of course also applies to Ruesselsheim,” an Opel spokesman said, adding that the company does not publicly comment on details of its internal plans.

PSA bought Opel and its British sister brand Vauxhall from GM last year in a $2.6 billion deal, saying it aimed to restore Opel to profitability by 2020.

PSA Group had posted a 7.8 percent increase in quarterly revenue, buoyed by the acquisition of Opel-Vauxhall as well as strong sales of pricier Peugeot models.

An Opel works council representative was not immediately available for comment.

In May Opel’s labour leaders had agreed with PSA management on an investment plan and job guarantees for German factories in return for wage concessions. (Reporting by Ilona Wissenbach and Riham Alkousaa Editing by David Goodman)

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