💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

GM's Opel to defy crisis, boost output of Insignia

Published 12/16/2008, 05:38 AM
Updated 12/16/2008, 05:40 AM
TTEF
-

FRANKFURT, Dec 16 (Reuters) - Germany's Opel, a unit of GM, is increasing production at its key Ruesselsheim plant to keep up with demand for its new Insignia model, defying the slump in automotive sales around the world.

The company was working to increase output in the western German town to a maximum capacity of 800 Insignia cars per day, up from currently just over 600, a spokesman for Opel said on Tuesday.

In addition to increasing overall production capacity, the company has added four eight-hour shifts to boost production by a total of 1,000 cars.

Opel started building the Insignia, which won the coveted European Car of the Year award, this year. The mid-sized saloon will compete with cars including Ford's Mondeo model and the Citroen C5.

"The Insignia has had a good start", the spokesman said.

The spokesman for the carmaker could not say whether further shifts would be added, saying the company scheduled shifts on short notice depending on orders for its cars.

Car sales have fallen dramatically as the global financial crisis has gathered steam. European new car sales fell 25.8 percent year-on-year in November, the seventh consecutive monthly drop, according to car manufacturers' association ACEA.

Opel plans to cut production of its Astra and Corsa models, which are made in the German cities of Bochum and Eisenach. The company has said before it would make 10 percent fewer cars in 2009 than it did this year.

Opel has also sought funding guarantees from the German government to help weather the devastating downturn in auto markets. The German government has said any funding for Opel was conditional on none of it finding its way back to GM. (Reporting by Maria Sheahan; editing by Simon Jessop)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.