Opel dismisses reports of plants running at half-capacity
RUESSELSHEIM, Germany, April 10
RUESSELSHEIM, Germany, April 10 (Reuters) - General Motors' loss-making European brand Opel is currently running at 70 percent capacity in three-shift operation, Opel production chief Peter Thom said, dismissing press reports that it was far lower.
"In two-shift operation, utilisation is around 100 percent," he told Reuters on Wednesday.
Given the high amount of fixed costs when manufacturing cars, the utilisation of existing production capacity in factories is a crucial determining factor for earnings.
German press had recently reported Opel plants in Europe were running at half their capacity, far below the 80-85 percent generally needed for a carmaker to be profitable.
Earlier, GM pledged to invest 4 billion euros ($5.2 billion) in Opel by the end of 2016 to support new model launches.
- Atheists face death in 13 countries, global discrimination: study
- Missouri executes man for killing good Samaritan motorist in 1994
- Focus turns to Thai military, anti-government protesters tell them to pick sides |
- Google executives' planes saved millions in costs due to error - NASA
- Apple scores legal victory over Samsung in South Korea