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Opel May Move Some Astra Output Out of Germany
General Motors Co.'s Adam Opel unit plans to shift annual production of 10,000 Astra small cars from its plant in Russelsheim, Germany, to a factory in Gliwice, Poland, Frankfurter Allgemeine Zeitung reports, citing unidentified labor sources.
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General Motors Co.'s Adam Opel unit plans to shift annual production of 10,000 Astra small cars from its plant in Russelsheim, Germany, to a factory in Gliwice, Poland, Frankfurter Allgemeine Zeitung reports, citing unidentified labor sources.
The shift would amount to one-third of current Astra output at the Russelsheim facility, which also makes the Insignia midsize sedan. The Polish plant, where labor costs are lower than in Germany, already produces the Astra.
Opel also builds the model at factories in Bochum, Germany, and Ellesmere Port, England. The company is reportedly considering a plan to close both facilities after 2014 as part of a restructuring plan to reverse years of losses.
CEO Karl-Friedrich Stracke blames the company's declining European market share on consumer preferences for budget and premium models rather than Opel's mostly mid-range vehicles, the Frankfurt newspaper says. It cites an internal memo in which Stracke says Opel won't try to regain share by joining the price war started by some of its competitors.
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