Opel resolves overcapacity at German R&D center

BERLIN, March 20 (Xinhua) -- German car manufacturer Opel has taken steps to reduce the size of its development Center at its headquarters in Ruesselsheim by offering engineers the possibility to receive severance pay or transfer to French engineering firm Segula Technologies, the company announced on Wednesday.

Opel management had reached an agreement with the company's works council on a procedure for the planned transfer of numerous Opel engineers to Segula.

"We are really happy about today's announcement," Harald Hamprecht, Opel's vice president of communications and member of the executive committee, told Xinhua on Wednesday. "The RD Center in Ruesselsheim is and will stay at the heart of the Opel brand."

The agreement between Opel management and its works council would help overcome the overcapacities in Ruesselsheim, "while preserving the core competences to support Opel's future," Hamprecht said.

The Ruesselsheim development Center, which currently employs around 6,400 people, was no longer used to capacity after a decline in orders from General Motors, the previous owner, according to Opel.

In total, 2,000 jobs at Opel will be affected by the new agreement with Segula. New programs for early retirement and partial retirement are also part of the agreement, according to Opel.

Speaking to Xinhua on Wednesday, Joerg Hofmann, the President of IG Metall, Germany's dominant metal workers' union, said that the union "welcomed the agreement" and that it was a positive sign "that the people concerned are given the opportunity to choose whether they want to switch to an external service provider".

Hofmann added, however, that the agreement between Opel and Segula "was nevertheless a painful loss of jobs."

Opel, which belongs to the PSA Group, underlined that Ruesselsheim will continue to be a core part of Opel's development network in the future. The development Center would be responsible for the design and "competitive development" of all future Opel/Vauxhall models.

The Ruesselsheim development Center would also be responsible for global tasks within the PSA Group, such as the development of light commercial vehicles and a new engine family, according to Opel.

Opel entered into a strategic partnership with Segula in November 2018 that included the transfer of "up to 2,000" employees. Parts of the Opel development Center were also sold to the French service provider.