Stellantis plans to split two German plants from Opel

Automotive conglomerate Stellantis is planning to split off two Opel plants in Germany, a decision which is being met with union resistance.

The two plants in Russelsheim and Eisenach would still be under the control of parent company Stellantis, but no longer under the direct ownership of Opel – potentially opening up to other group brands such as Peugeot, Citroen and Fiat among others.

According to Reuters, the Eisenach plant is preparing to pause production due to the ongoing semiconductor shortage, with the plans to split the plants from Opel potentially allowing the factory workers to keep their jobs.

"The advantages associated with this more efficient and flexible organisation should contribute to securing jobs in the long-term," a Stellantis spokesperson told Reuters.

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However, while Opel is bound by an agreement to retain its workers and not hand out any redundancies until 2025, the unions are worried the current furlough scheme is a ploy to keep its staff employed while Stellantis moves manufacturing out of the country.

Stellantis has said it is committed to keeping Opel operating in Germany throughout the chip crisis.

"The global automotive industry is in an exceptional situation due to the ongoing pandemic and a global shortage of semiconductors," Stellantis added.

"Production in Eisenach is scheduled to start again at the beginning of 2022, provided the supply chain situation allows."

Stellantis CEO Carlos Tavares has previously said he believes the semiconductor shortage will extend into 2022 as chip-makers prioritise the consumer goods industry, crippling the automotive sector.