Stellantis’ silence on Opel plans erodes trust, German states say

1 min


161
100 shares, 161 points

The Opel headquarters in Ruesselsheim, Germany, April 6, 2020. REUTERS/Ralph Orlowski

BERLIN, Oct 14 (Reuters) – The leaders of three German states where Opel has factories wrote to the chief executive of the carmaker’s owner Stellantis (STLA.MI) on Thursday, criticising his lack of communication on plans for Opel which they said was eroding public trust in the company.

Stellantis disclosed to the press late last month that Opel’s Eisenach plant would shut for at least three months due to ongoing global chip shortages. read more

Last week, Stellantis confirmed that it was considering splitting off both the Eisenach plant and Opel’s largest plant in Ruesselsheim, Germany into separate legal entities, after newspaper Handelsblatt reported discussions were underway. read more

The governments of Rhineland-Palatinate, Hesse, and Thuringia, the states where Opel’s three German plants are located, were not told about either decision ahead of the information being made public, the state premiers said in their letter to Stellantis CEO Carlos Tavares, seen by Reuters.

“You yourself, Mr Tavares, at the former PSA Group had ensured open and honest communication with representatives of states with Opel locations about your plans for Opel Germany,” the letter from Malu Dreyer, Volker Bouffier and Bodo Ramelow, dated Oct. 14, said.

“We are turning to you with this letter out of concern, before the trust is lost through further unexpected news from Stellantis’ side.”

France’s PSA Group acquired Opel in 2017 and implemented deep cuts which led the company to turn a profit for the first time in nearly two decades within a year. PSA merged with Fiat Chrysler earlier this year to form Stellantis, now the world’s fourth-largest carmaker.

Stellantis’ CEO Tavares has made clear the need to streamline Stellantis’ 14 brands and ease a global overcapacity problem, but he has previously promised that his endeavours to turn around Opel would not involve factory closures.

However, last week union officials said they feared the company would renege on this promise in light of the chip shortage, which Tavares has previously said he expects will last well into mid-2022.

The German state premiers asked Tavares to set a date for a video call with them to discuss Stellantis’ plans.

Reporting by Victoria Waldersee; Editing by Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.

Source: Reuters


Like it? Share with your friends!

161
100 shares, 161 points

What's Your Reaction?

Cute Cute
24
Cute
Fun Fun
16
Fun
Hate Hate
10
Hate
Confused Confused
26
Confused
Fail Fail
18
Fail
Geeky Geeky
13
Geeky
Love Love
5
Love
OMG OMG
26
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format