Brexit pushes Opel to cut staff hours in Germany

Thrugelmir

Falling exchange rates already seem to be impacting EU exports to the UK.

German carmaker Opel plans to cut its workers' hours this year because it expects Brexit to hurt its UK sales.
A spokesman for Opel said about 5,000 workers at its Ruesselsheim and Eisenach factories would be affected. Opel is owned by US car giant GM. The pound has weakened against the dollar and euro since the UK's 23 June vote to leave the EU, adding costs for firms exporting to the UK.The UK is the biggest market for Opel's Insignia and Corsa models. The Opel cars are sold under the Vauxhall brand in the UK.The spokesman did not specify how many fewer hours Opel staff in Germany would have to work.

http://www.bbc.co.uk/news/world-europe-37133037

A_Medium_Size_Jock

Thrugelmir wrote: »

Falling exchange rates already seem to be impacting EU exports to the UK.



http://www.bbc.co.uk/news/world-europe-37133037

This particular issue is not about "pro" or "anti" EU to me; I wish to make that very clear.
But this whole issue is full of inconcistencies.

Yes, I have read a few versions of that report.
Nothing at all to do with the fact that GM Europe only just made a profit for the first time since 2011 then? ($137 million - vs losses of over $15billion.)
Which is also why the Chrysler brand was withdrawn.
Despite GM's overall profitability being reasonable.

ALSO - car sales are currently level (or very slightly up) on this time last year, on figures until the end of July.
http://www.smmt.co.uk/2016/08/new-car-demand-level-in-july-after-positive-start-to-2016/

And as usual, some dealers are reporting good sales & some not.
Which is often the way.
http://europe.autonews.com/article/20160817/ANE/160819873/uk-car-sales-holding-up-despite-brexit-vote-dealer-group-lookers-says
http://www.ft.com/cms/s/0/ca8fa100-6381-11e6-8310-ecf0bddad227.html#axzz4HsJFRgO8

I also note the wording of the BBC report, which differs somewhat from that of the link below which says:

The General Motors unit said the number of days when shorter working hours apply would depend on demand for the Insignia midsize sedan and the Corsa subcompact hatchback in the UK.

http://europe.autonews.com/article/20160819/ANE/160819825/opel-cuts-working-hours-at-two-german-plants-following-brexit-vote
And:

Last month, however, GM executives have said softer vehicle sales ....

Which does not tie-in with actual UK registrations as shown above.
http://www.wsj.com/articles/gms-opel-to-trim-hours-of-german-workers-1471634855

All-in-all it would seem that blaming those cutbacks on something that has not yet happened - be it Brexit OR reduced sales - is at best exaggeration and premature.
It would appear to be more about GM taking an opportunity to maximise profitability.

Thrugelmir

A_Medium_Size_Jock wrote: »

All-in-all it would seem that blaming those cutbacks on something that has not yet happened - be it Brexit OR reduced sales - is at best exaggeration and premature.

Seems to be expected.

"We can confirm that there will be short-time work in the plants in Ruesselsheim and Eisenach during the course of this year," Opel said in a statement, adding that the number of days when shorter working hours apply would depend on the sales volume of the Insignia and the Corsa in the United Kingdom.

Sounds as if forward orders have been in decline for a while

BobQ

Whether this is due to Brexit vote or not, it will not help UK -GER relations if Opel says it is.

Thrugelmir

BobQ wrote: »

Whether this is due to Brexit vote or not, it will not help UK -GER relations if Opel says it is.

Business is business. Opel is owned by GM. So American.

CLAPTON

BobQ wrote: »

Whether this is due to Brexit vote or not, it will not help UK -GER relations if Opel says it is.

in what way will UK- GER relations be affected?

have the people of a country never ever reduced their demand for any single german product before: not spain, italy, china, russia, india, portugal, greece, USA, Canada... never ever ever?

if the people of Germany reduces their demand for a single UK product, will UK-German relations be damaged?

maybe best to stop all international trade just in case it leads to war.

BobQ

CLAPTON wrote: »

in what way will UK- GER relations be affected?

have the people of a country never ever reduced their demand for any single german product before: not spain, italy, china, russia, india, portugal, greece, USA, Canada... never ever ever?

if the people of Germany reduces their demand for a single UK product, will UK-German relations be damaged?

maybe best to stop all international trade just in case it leads to war.

I agree it should have no impact in a logical world, but I am just noting that if the German press present this as German jobs being affected by the choices of the UK public it will not be helpful. On its own it will not make a sunstantial impact I accept.

Conrad

BobQ wrote: »

I agree it should have no impact in a logical world, but I am just noting that if the German press present this as German jobs being affected by the choices of the UK public it will not be helpful. On its own it will not make a sunstantial impact I accept.

Of course the UK becoming more competitive relative to Germany and the Germans facing job cuts and loss of exports will be helpful in trade negotiations for us. What do you think Merkel will be saying during the upcoming general elections, that she wants to harm German workers by making trade with UK more difficult?

A key Brexit argument was that we hold several key cards when it comes to getting a decent trade deal. All will work out well for us, common sense.

Carl31

If this was the case ( and as said above, it's probably naff all to do with brexit) surely this just strengthens our bargaining position? If EU countries are that reliant on the UK for trade, then they need us

Eric_the_half_a_bee

Carl31 wrote: »

If EU countries are that reliant on the UK for trade, then they need us

Of course they need us. We are the largest net importer in Europe, and the second largest net importer in the world (after the US).

If the EU countries were not part of a political organisation called the EU, they would sign free trade agreements in a flash.

Their problem is that the EU, as an organisation, is built on an assumption that free trade can only be granted in return for a lot of other political commitments. Commitments that the UK has now rejected.

The dawning realisation across Europe is that the EU is an impediment to free trade and prosperity, not an enabler of it.

CLAPTON

BobQ wrote: »

I agree it should have no impact in a logical world, but I am just noting that if the German press present this as German jobs being affected by the choices of the UK public it will not be helpful. On its own it will not make a sunstantial impact I accept.

I think you are completely mad , brexit is serously damaging your sanity: trade levels fluctuate ALL the time.
The thought there is outrage because the Germans buy fewer RR engines this year is ridiculous.