Another Car Manufacturer in Crisis: 1,600 Employees Sent Home

Written by Kathrine Frich

Dec.03 - 2024 10:47 AM CET

Autos
Photo: Shutterstock
Photo: Shutterstock
From December 9, the factory will reduce operations to a single shift.

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The car industry has faced one challenge after another in recent years.

Supply chain issues, fluctuating demand, and the shift toward electric vehicles have left many manufacturers scrambling to adjust.

At Opel’s Rüsselsheim plant in Germany, the reality of these pressures is becoming clear, according to Handelsblatt

This week, parts of the factory went silent as production of the Opel Astra and DS 4 was paused. Employees were sent home but received full pay for the week.

From December 9, the factory will reduce operations to a single shift. This schedule will stay in place until at least the end of January.

The decision wasn’t easy. Stellantis, Opel’s parent company, stated the changes were necessary to address current market conditions and completed orders.

The move also reflects the need to realign production with demand.

A Temporary Pause or a Sign of Deeper Trouble?

The Opel Astra has been performing well, with a 47% sales increase in Europe this year. But the DS 4 hasn’t fared as well, showing declining demand.

The Rüsselsheim plant, which produces both models, now finds itself at a crossroads.

Shifting to single-shift production isn’t just about cutting costs. Opel aims to streamline operations to improve the factory’s competitiveness in the long term.

For the 1,600 employees working there, the news is a mixed bag—while job security isn’t immediately threatened, the future feels uncertain.

The changes at Rüsselsheim come during a challenging time for Stellantis. This week, Carlos Tavares, the group’s CEO, officially stepped down. While some analysts suspect he was pushed out, the company has not confirmed this.

For Opel, the focus now is on weathering the storm. The automotive industry is in flux, and companies must adapt quickly to stay relevant.

At Rüsselsheim, the immediate priority is aligning production with the current reality. Whether these adjustments will be enough remains to be seen.

The coming months will be critical—not just for Opel, but for the entire industry navigating these turbulent times.