Opel Blames Brexit for Working Hour Cuts at Two German Factories

Opel Blames Brexit for Working Hour Cuts at Two German Factories

Opel has blamed Brexit for a fall in working hours at two of its factories in Germany.

Although Britain is currently still part of the European Union and will stay in until Article 50 is invoked, this has not stopped bosses at Opel Group from blaming Britain’s exit from the EU for reducing working hours.

The German car manufacturer, which makes Opels badged as Vauxhalls in the UK, says that reduced working hours at two of its factories (Russelheim and Eisenach) was needed because of Britain’s vote to leave the European Union.

The company is said to have seen a fall in sales of its Corsa and Insignia models in particular and is yet to expand on the exact nature of the cuts, which would affect approximately 5,000 workers in their various factories.

In an official statement, Opel said: “The Brexit situation is an issue for everybody who does business in and with the UK at the moment. There will be an impact on European financial performance if the pound remains at its current level for the rest of the year.”

Opel was open in its position of staying in the EU and warned of the dangers associated with Brexit, specifically stating that a move could cost it £305 million because of currency exchange rates and a decrease in demand for vehicles.

Currently, the Vauxhall Corsa is the second best-selling car in the UK after the Ford Fiesta, while the Astra is also a big seller, which is why Opel Group has seemed to take a cautious stance when awaiting the outcome of the EU referendum.

If the pound is further weakened, this may increase the cost of importing cars, which would force it to raise the price of each car to claw back the costs and therefore make them more difficult to sell.

Share this post