Peugeot subsidiary Opel announces 2,100 job cuts in Germany

Frankfurt Am Main, Jan 14 (AFP) Peugeot subsidiary Opel said Tuesday it would offer 2,100 more German workers voluntary redundancies, as it struggles to stay afloat faced with collapsing demand and an EU emissions squeeze.

The historic German carmaker, which Peugeot bought from US-based General Motors in 2017, has already slashed almost 7,000 jobs since the takeover, as tumbling sales have left its main factory largely idle.

The German unit intends to cut as many as 4,100 jobs, joining car makers around the world in retrenching amid a sales slowdown and technological disruption

According to a Bloomberg's Oliver Sachgau reports, citing a person familiar with the matter, Opel will slash at least 2,100 jobs by 2025 and could take measures to eliminated an additional 1,000 jobs twice in two-year increments through 2029.

The car maker will brief workers on the matter on Tuesday, Sachgau notes. Opel will reopen a voluntary leave program for employees at the company’s Rüsselsheim, Eisenach and Kaiserslautern locations, eliminating the positions by 2025, the company said in a statement Tuesday.

“This agreement creates a further considerable improvement of our competitiveness,” Opel Chief Executive Officer Michael Lohscheller said in the statement. The company will also invest more money into the Rüsselsheim plant.

Opel’s workforce stands at roughly 30,000 employees. PSA shares slipped 1% at 12:48 p.m. in Paris.

PSA announced plans late last year to merge with Italian-American automaker Fiat Chrysler Automobiles NV and has said no plants will close as a result of the deal.

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