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Opel's unions condemned the possible partial sell-off of the automaker's Ruesselsheim-based r&d arm, demanding management explain itself at a town hall meeting this week.
Opel has suspended voluntary buyouts after staff representatives warned that a wave of departures following PSA's takeover could leave it short of skilled workers.
PSA revenue rose 42 percent to 18 billion euros ($22 billion) in the first quarter, lifted by its acquisition of Opel-Vauxhall last year.
PSA boss Carlos Tavares, who is no stranger to thrashing out difficult labor deals, is now taking on Germany's powerful IG Metall union, which has been the undoing of many a cost cutter.
PSA wants 3,700 job cuts at Opel in Germany by 2020 and a process of contract buyouts and early retirement has already resulted in a reduction of about 2,000 positions, Opel's labor chief said.
PSA's fight to cut production costs at Opel's German factories took on a national dimension with Chancellor Angela Merkel intervening to say she expected the French automaker to honor commitments it made when it bought Opel from GM last year.
PSA Group will focus its slimmed-down Opel/Vauxhall dealership network across Europe on sales performance and customer satisfaction.
Opel and Vauxhall are cutting dealerships as new owner Peugeot continues to reduce costs at the automaker it acquired last year in the face of sliding sales, notably in Britain, a major market.
"No regrets" -- That's PSA Group CEO Carlos Tavares' assessment one year after striking a $2.7 billion deal for Opel and Vauxhall, General Motors' stubbornly unprofitable European brands.
Opel said a full-electric version of its Corsa will launch in 2020, a year after the conventionally powered new generation of the subcompact hatchback goes on sale.
Opel denied a report that its loss widened to more than 1 billion euros ($1.24 billion) last year.
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