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Stellantis To Split Two Of Opel’s Biggest German Plants, Unions Fear Closure

Stellantis is considering splitting two of Opel’s German plants, in Russelsheim and Eisenach, as it faces accusations from unions of using chip shortage-related furloughs there to break an agreement it had previously struck with the brand’s workers.

A Stellantis spokesperson told Reuters that the plants, one of which, the one in Russelsheim, is the carmaker’s largest, would no longer be part of Opel Automobile GmbH but would remain linked to Stellantis, saying that talks were underway with unions about the plan.

“The advantages associated with this more efficient and flexible organization should contribute to securing jobs in the long-term,” the spokesperson said.

Read Also: The Chip Shortage Could Cost The Auto Industry $210 Billion This Year

The news comes after unions expressed concerns that Stellantis would shut down the Eisenach plant permanently after announcing a three-month-long temporary shut down, which it blamed on the global chip shortage.

To be sure, the chip shortage has affected plants around the world, but workers accused Stellantis of exploiting Germany’s furlough rules to move production out of the plants. Already, the company has moved production of the Opel Grandland X out of Eisenach to its facility in Sochaux, France.

Although that move is officially temporary, workers fear that it will become permanent. Stellantis is bound by an agreement it struck last year not to lay any workers off at Opel‘s German plants until 2025, but workers worry that it might be using the excuse of the chip shortage to circumvent that agreement. Analysts say that it has an overcapacity problem that could lead to plant shutdowns.

Stellantis, meanwhile, argues that it is simply reacting to the global supply shortage.

“The global automotive industry is in an exceptional situation due to the ongoing pandemic and a global shortage of semiconductors,” the company told Reuters in a statement. “Production in Eisenach is scheduled to start again at the beginning of 2022, provided the supply chain situation allows.”

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Opel Goes All Electric By 2028 And Brings Back The Manta As An EV

As part of Stellantis’ EV Day, Opel announced a three-prong electric vehicle strategy for the coming decade. The company promised that it will go all-electric in Europe by 2028, will take on the Chinese market with EVs, and will bring a reinvented Mata e to market by mid-decade.

The plan was laid out in a video presented by Michael Lohscheller, the brand’s CEO. Recently gathered into the Stellantis empire, Opel is just one of many brands making promises about its electric strategy today.

Read More: Stellantis To Spend $35 Billion On Electrification Strategy For All 14 Brands By 2025

“Opel will only offer electric cars on its core European market from 2028,” said Lohscheller. “This emphasizes our brand’s commitment to electric mobility.”

Unfortunately for fans of the Manta GSe ElektroMOD Coupe, it doesn’t seem that the Manta E promised in today’s announcement will look like the electric restomod that Opel unveiled earlier this year (above). An image shown in the video reveals an EV that looks distinctly more futuristic.

It’s likely to be based on Stellantis’ new EV platform, which the corporation says will be good for between 500 km (311 miles) and 800 km (497 miles) of range. Opel also revealed in a slide that its entire lineup would be electrified to some degree or another by 2024.

Although Opel was clear that the Manta E would be unveiled and produced in the mid-2020s, it did not reveal exactly when it would tackle China, nor who its local joint venture partner will be.

The company will exclusively sell EVs there, though, it said. The country is the world’s biggest automotive market, as well as its biggest EV market thanks to attractive government incentives. Opel has already dipped its toes into the market but Automotive News Europe reports that tariffs meant that the company only sells around 5,000 vehicles annually there.

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