Opel, the German car manufacturer and subsidiary of Peugeot, is all set to lay off 2,100 workers in a bid to remain afloat in the face of dropping demand and stricter carbon dioxide regulations that have been imposed on the automotive industry. Last year was the worst for German car manufacturers, with production being the lowest in over two decades.
The Company had already reduced its 19,000 strong workforce by 7000, soon after it was taken over by Peugeot from General Motors about three years back. Before being taken over by Peugeot, Opel had been incurring losses for a long time, but was able to sell about a million cars post its acquisition in 2018.
The Ruesselshein plant of Opel will now be enhanced and equipped to manufacture the hybrid and internal combustion varieties of the next-generation Astra sedan.
While it guarantees that there will be no more forced cuts till 2025, right now up to 2100 employees will be offered the voluntary leave option.
Starting 2020, car makers in the EU will have to mandatorily ensure average carbon dioxide emissions below 95 gm. per km. or face strict fines.
Most car manufacturers in Germany have already laid off close to 40,000 people, with maximum layoffs happening at Daimler and Audi. They are all taking steps to eliminate duplication of work, do away with redundancies and focus on making electric cars that are less labour intensive.