Opel Poised to Cut Hours at Two Plants

General Motors Co.'s Opel unit says it is close to signing an agreement with its unions to shorten operating hours at two facilities in Germany: a car plant in Russelsheim and an engine and parts factory in Kaiserslautern.

News reports predict a deal will be reached by Wednesday, thus allowing the new schedule to go into effect on Sept. 1.

Opel confirmed last week that it was in talks with labor officials in Russelsheim about reducing production shifts by an unspecified amount.

The company is seeking the flexibility to shorten or extend daily or weekly work schedules based on vehicle demand, according to The Wall Street Journal. Germany's Handelsblatt says Opel wants to move to from a five-day to a four-day work week at the two factories. Both newspapers cite unidentified sources.

GM is pressing for a turnaround of its European unit, which lost $617 million (€500 million) in the first half of this year. Shorter work hours would trim labor expense and more closely align output with shrinking European sales.

The company's existing contract already allows it to cut the standard 35-hour work week to 31 hours, according to Reuters. Reductions beyond that require union approval.