Opel Sends Workers Home

Bertel Schmitt
by Bertel Schmitt

GM’s troubled German daughter will close its main factory in Rüsselsheim and its component plant in Kaiserslautern for a total of four weeks in response to a drop in demand for cars in Europe.

According to a Reuters report, Opel will halt production for a total of 20 working days between September and the end of the year. In a statement, Opel’s HR chief Holger Kimmes says:

“The European automobile market is declining dramatically. Now, shortened working hours are the correct measure to bridge the weakness of the market.”

As reported earlier, shortened hours (they can be shortened all the way to zero,) called “Kurzarbeit” (“short work”) in German, are a temporary measure that allows to react to insufficient demand. Workers can be sent home without or with reduced pay, they will receive unemployment benefits of up to 67 percent of their normal pay.

9,300 blue and white collar workers at Opel are affected.

Says Reuters:

“Now that it has the approval of the works’ council and labor union IG Metall for the plan, Opel can apply for subsidies under the German government’s short-work program, called “Kurzarbeit”.

The scheme was used by many struggling companies in the 2008-2009 recession, allowing them to preserve jobs by cutting employees’ hours when plant usage was low and having the government compensate workers for part of their lost wages.”

Germany’s Handelsblatt adds:

“An erratic course of the mothership GM and the crisis in Europe hollowed-out Opel’s foundations. Its market share sinks, creating huge problems with overcapacities. Several attempts at a restructuring failed. Two years ago, 8,000 jobs were slashed in Europe, the factory in Antwerp was closed. Nevertheless, losses in the Europe business piled up to more than half a billion dollars in the first half of the year. In the last ten year, GM lost more than $14 billion in Europe.”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Dcars Dcars on Aug 23, 2012

    Like it or not, Opel is a division of GM. Working against the parent company is disloyal and damaging to the entire company.

  • Zackman Zackman on Aug 23, 2012

    Opel is beginning to sound like a SAAB story...

  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
  • Lorenzo Heh. The major powers, military or economic, set up these regulators for the smaller countries - the big guys do what they want, and always have. Are the Chinese that unaware?
  • Lorenzo The original 4-Runner, by its very name, promised something different in the future. What happened?
  • Lorenzo At my age, excitement is dangerous. one thing to note: the older models being displayed are more stylish than their current versions, and the old Subaru Forester looks more utilitarian than the current version. I thought the annual model change was dead.
  • Lorenzo Well, it was never an off-roader, much less a military vehicle, so let the people with too much money play make believe.
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