Rabat – Automotive manufacturer Opel, a subsidiary of Stellantis, has reportedly threatened to relocate part of its operations to Morocco from Germany’s Russelsheim.
German news outlet NTV has reported that Opel is facing “problems” with its parent company, Stellantis.
The news outlet said that Opel management has threatened to relocate employees to Morocco, citing “cost reasons.”
Employees at Opel’s working council have denounced claims that the “next reorganization of Stellantis is not only imminent … it is already being implemented illegally without prior information.”
The employees also said that their “rights of co-determination were violated” since “extensive and uncoordinated presentations on a new organizational structure were also presented in purchasing,” NTV reported.
Stellantis already expressed interest in removing operations from two plants currently employed by Opel.
According to German business magazine, Manager Magazin, “It will be examined whether the Russelsheim and Eisenach production facilities will be developed into their own legal and production organization.”
Stellantis is already looking to expand into Morocco’s market. The multinational automotive manufacturing company and Morocco signed a new amendment agreement to boost cooperation to develop the automotive sector in September.
The agreement also seeks to launch a 100% electric vehicle and to enhance the volume of purchases in Morocco to an estimated value of €2.5 billion (MAD 26 billion).
Morocco and Stellantis aim to increase its value to €3 billion (MAD 31.5 billion) by 2025.
The agreement is also expected to generate 3,000 high-level jobs by 2022 for engineers and technicians.
In August, Stellantis unveiled plans to produce the new Opel Rocks (e-electric car) in Morocco.
Morocco’s automotive sector gained attraction from international companies, operating in free zone hubs across the country.
Car sales in Morocco exceeded 160,000 units this year, generating nearly 22,000 direct jobs in the auto industry.
Morocco retains its position as Africa’s leading passenger car manufacturer, surpassing South Africa.
