Opel Intends to Close Antwerp Facility
As Opel moves quickly on its way towards a viable future, the company has announced the intent to wind down its manufacturing plant in Antwerp, Belgium in the course of 2010.
Opel will continue to engage in the official information and consultation process with employee representatives regarding the envisaged restructuring.
“We fully understand the effect this announcement has on the Antwerp employees and their families and we sympathise with them,” said Opel CEO Nick Reilly. “Many have been dedicated to the plant over generations and have done an excellent job producing great quality cars. The decision was not taken lightly; instead, it is the unfortunate result of the current business reality. We must make this announcement now so that we can secure a viable future for the entire Opel and Vauxhall operations.”
The global economic crisis has led to a major downturn in the automotive industry. The Western European car market in 2010 is expected to be 1.5 million vehicles below 2009 levels and almost 4 million below its peak in 2007. It is not expected to return anytime soon – if ever – to these peak levels, resulting in significant overcapacity in general and at Opel in particular. To ensure long-term sustainability for the company, Opel needs to reduce capacity by approximately 20 percent.
In view of current capacity utilisation at all European Opel and Vauxhall plants, planned future product portfolio, timing requirements and financial impact, winding down the Antwerp plant would be the most logical approach for the company. If confirmed, production would conclude in the next few months.
It is expected that the full restructuring plan, when completed, will affect all Opel and Vauxhall production sites and entities through such measures as capacity reductions, job redundancies and labour cost reductions. More details will be announced in due time.
Antwerp Fact Sheet
Currently 2,606 employees, representing about five percent of the Opel/Vauxhall European workforce, work at the Antwerp plant, building Astra three-door, TwinTop and station wagon models. In 2009, 88.873 Opel Astra cars were built there; some 96 percent of the production was slated for export.
It was founded in 1924 under the name General Motors Continental. The first Chevrolet was built there on April 2, 1925.
The Antwerp plant has been mainly responsible for building various models of the Opel Manta, Ascona, Kadett, Vectra and Astra cars as well as components. To date, more than 13 million cars and trucks have been built at the site.
