PSA Threatens to Move Opel Production from Zaragoza

PSA Group says it might assign production of the next-generation Opel Corsa small car elsewhere unless workers at its factory in Zaragoza, Spain, agree to make the facility more productive, Reuters reports.

PSA claims the Zaragoza plant is more costly to run than its other two assembly operations in Spain. But months of talks with unions over wages and work rules have failed to reach a deal. The company, which acquired Opel from General Motors Co. last August, insists it won’t make further investments in any facility that isn’t profitable.

The Zaragoza complex opened in 1982 and has been producing the Corsa for decades. The facility also makes Opel’s Crossland X and Mokka mini crossover vehicles. A South Korea-sourced variant of the latter model is sold in the U.S. as the Buick Encore.

Reuters says the Zaragoza plant ran at 80% of capacity last year and made 382,300 vehicles. The facility employs 5,300 people.​​​​​