March 28, 2019 / 7:43 AM / 2 months ago

PSA's Opel to cut up to 400 jobs in Austria - works council

VIENNA, March 28 (Reuters) - PSA Group’s Opel plans to cut 350-400 of 1,200 jobs at its Austrian production site in Vienna due to the expiration of a large order for gearboxes, the head of the Vienna works council told ORF radio on Thursday.

The Vienna staff were informed about the planned job cuts at a works meeting, Franz Fallmann told ORF.

PSA bought Opel and its British sister brand Vauxhall from General Motors in 2017 in a $2.6 billion deal. Last year, Opel posted its first full year profit since 1999 and contributed positive cash flow of 1.35 billion euros ($1.52 billion)towards the group’s 3.5 billion euros.

“The development of personnel means that there are 350 to 400 colleagues too many on board,” Fallmann said, confirming an earlier report in the daily Kleine Zeitung. Negotiations about a redundancy programme are about to start.

The Vienna production site itself will be retained and produce a 6-speed manual gearbox from summer, Fallmann said.

$1 = 0.8886 euros Reporting by Kirsti Knolle; Editing by Mark Potter

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