Opel declined to comment on the matter but a spokesperson indicated that the firm wants to keep its European market share of roughly 6.8 percent stable over the next 12 months. Since the market is shrinking, the only way to achieve that goal is by cutting production.
Research from the Association of European Car Manufacturers shows that the European new car market shrunk by 7.2 percent from January to November of this year compared to the same time period last year. The forecast for 2013 is dim and analysts expect that the decline will continue.
Opel has been hit hard by the European economic crisis and it is desperately seeking ways to stay afloat. Last week, the automaker announced that it will sell six of its facilities in Europe to its parent company in order to raise much-needed capital.
The firm also said that it will close its 50-year old factory in Bochum, Germany, in 2016, a move which is expected to cut about 3,000 jobs.