Opel May Shorten Hours at Its Main German Factory

General Motors Co.'s Opel unit says it is in talks with unions at its assembly plant in Russelsheim, Germany, about shortening work hours there, thus confirming a report in Mainzer Allgemeine Zeitung.

Opel did not comment on MAZ's assertion that the company also might curtail shifts at an engine facility in Kaiserlautern, Germany, which employs 2,500 workers.

GM's European unit, reeling from a $617 million operating loss in the first half of 2012, aims to align output with declining sales. Demand for its Opel and Vauxhall brands across Europe tumbled 15% to 467,900 vehicles in that period as the overall market slid 6%.

Reducing production in Russelsheim Opel's largest factory also would trim labor costs by temporarily laying off the facility's 3,500 hourly employees. The company has approached the German government to see if those workers would be eligible for subsidies for lost wages, according to Automotive News Europe.

The Web-based newspaper opines that Opel probably won't cut output at its other German assembly plants. It notes that demand remains solid for the Zafira MPV and Corsa subcompact made at facilities in Bochum and Eisenach, respectively.