"Olympia" Turnaround Plan
Manufacturing Locations Of GM Europe Begin Discussion Of Key Olympia Initiatives With Local Employee Representation
- Pan-European Framework Paves Way
- Local Consultation Underway in Several Countries
- Key Local Manufacturing Proposals Framed
To facilitate these local discussions, the company mapped-out several initiatives aimed to restructure the manufacturing footprint in Europe as part of the "Olympia" Turnaround Plan. These proposed initiatives were reviewed at a regular meeting of the European Employee Forum on October 2, and local discussions have meanwhile started with local employee representatives at various GM Europe locations. The initiatives identified for discussion include:
Vehicle Manufacturing
Installed technical capacity in Europe will be reduced by approximately 350,000 units, with a phased approach to capacity adjustments being implemented per year through 2004. While facilities across Europe will contribute to the overall adjustment, the most significant opportunity to restructure on a major program basis comes with the implementation of the next generation Astra. As a natural result, assembly at both Antwerp, Belgium and Bochum, Germany - where Astra models are currently produced - will be impacted.
Discussions with the respective local employee representatives will include the possible transition of these plants to a lean manufacturing template with a single production line at a higher line rate on a three-shifts-basis in order to significantly increase efficiency and reduce structural costs. A shorter-term, interim solution, which may include a shift reduction, is also required to better align capacity with current demand and possible approaches will be explored and discussed with the respective local employee representatives.
Minor product adjustments in various locations will take place over the next two years to optimize plant utilization and cost efficiency across Europe. All Opel, Vauxhall and Saab plants in Europe will strive for efficiency improvements to move to world-class benchmark productivity standards, implementing best practices that have already been institutionalized in some of the company's most lean operations.
Powertrain Operations
The required capacity reductions would also have an impact on the company's powertrain operations that are now part of Fiat-GM Powertrain (FGP). FGP is currently studying various options in order to achieve the necessary capacity reductions while at the same time incorporating future product planning requirements. Proposals resulting from this assessment will be provided as soon as the study is complete in order to facilitate local discussions.
Other Operations
The company is assessing opportunities to consolidate operations and will also seek external partners to invest in, and grow, various operations in areas such as chassis, component, and stamping. For example, the company will seek external partners for several operations including stamping operations in Kaiserslautern (D); and various component operations in Bochum, Rüsselsheim, Kaiserslautern (D) and Zaragoza (E). In addition, all plants will initiate cost reduction plans in the area of facility management.
Open and Constructive Dialogue
At the recent European Employee Forum meeting held on October 2nd, these proposals were reviewed as a part of the ongoing consultation process with employee representatives. Additional information will be shared with that Employee Representation Body and will also be detailed in the local consultation procedures. Specific details about the corresponding employment impact will be provided once these local evaluations and discussions are successfully completed.
Michael J. Burns, President of General Motors Europe, commented: "We have now made an important step forward in the overall Olympia Turnaround Plan. Discussion and implementation of specific cost and capacity reduction measures at the local level, combined with the significant brand initiatives that are currently under development to increase revenues, will help to put us on the path to a sustainable and profitable future."
"We are now starting to transition from the analysis and planning phase towards the implementation of various Olympia initiatives, and will step up that effort considerably during the next couple of weeks", added Opel Chairman and Managing Director Carl-Peter Forster.