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PSA Vows to Honor Job Guarantees in Opel Bid
PSA Group says it will abide by existing job guarantees for Adam Opel AG workers “in the European countries” if it successfully acquires Opel from General Motors Co.
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PSA Group says it will abide by existing job guarantees for Adam Opel AG workers “in the European countries” if it successfully acquires Opel from General Motors Co.
Separately, GM has vowed not to conduct involuntary layoffs on “some” of its German workers until the end of 2018, according to the IG Metall union. Opel operates three assembly plants in Germany, two in the U.K. and one each in Poland and Spain. The company also has three powertrain manufacturing facilities in Austria, Hungary and Poland.
Analysts say an Opel acquisition by PSA is all but certain to lead to job cuts eventually. Sources tell Reuters that plant and workforce reductions have been part of the sales talks.
Reuters cites investment banking advisory firm Evercore Group LLC, which estimates that Opel operations ultimately will be reduced by 20%-30%, including at least 5,000 manufacturing jobs. Opel currently employs about 38,000 people in Europe, including 19,000 in Germany and 4,500 in the U.K.
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