September 20, 2018 / 6:21 PM / 2 months ago

Opel to further scale back production at Ruesselsheim: report

FILE PHOTO: An Opel logo is pictured in Ruesselsheim, Germany July 4, 2018. REUTERS/Ralph Orlowski/File Photo

FRANKFURT (Reuters) - Carmaker Opel, a unit of France’s PSA Group (PEUP.PA), is planning to further scale back production at its Ruesselsheim plant, a local newspaper group reported on Friday.

The company aims to cut production to 35 from 42 vehicles per hour, having lowered the output to 42 vehicles only last month, the VRM Gruppe, which publishes several local newspapers, reported on Thursday.

The plans have not yet been approved, VRM said.

VRM also said, citing an internal memo to employees, that the plant’s management has filed for seven so called “corridor days” between Oct.1-29, which effectively means no production will take place those days as workers are reducing overtime.

A spokesman for Opel said that the group was regularly adjusting production plans at its sites, declining to be more specific.

PSA bought Opel and its British sister brand Vauxhall from GM (GM.N) last year in a $2.6 billion deal, and said it aimed to restore Opel to profitability by 2020.

Reporting by Christoph Steitz; Editing by Alexandra Hudson

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