The economic crisis hit Opel hard in Europe where it can no longer sustain its operation with the slow sales. The company, which is owned by GM, announced today the intent to wind down its manufacturing plant in Antwerp, Belgium in 2010; the Belgium car plant has been in operation since 1920. The decision to announce the bad news was not taken lightly, but it is the unfortunate current business reality.
The global economic crisis has led to a major downturn in the automotive industry all over the world. Sales of vehicles in 2010 is expected to be 1.5 million vehicles below 2009 levels and almost 4 million below its peak in 2007 in the Western European car market. The decrease in sales is not expected to return anytime soon, and to ensure long-term sustainability for the company, Opel has to reduce capacity by approximately 20 percent, which means more plants are expecting to close in the future.
[Source GM]
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