BERLIN: German carmaker Opel will have to cut hours for its factory workers as demand for certain models falls in the wake of Brexit, a spokesman said on Friday.
Factories in Ruesselsheim, near Frankfurt, and Eisenach in central Germany -- where a total of about 5,000 workers produce the Insignia and Corsa models -- will be affected.
"We cannot confirm the exact number of days" that will be cut, the spokesman said. "That will depend heavily on the sales volume of the Insignia and the Corsa in the UK."
Opel, owned by US auto giant General Motors, sells more cars in Britain under its Vauxhall brand than in any other European country.
But slowing sales and the weaker pound are likely to take a bite out of the car manufacturer's financial results this year, potentially stalling its emerging recovery after years of hard times.
The pound suffered a sharp drop in the days following Britain's vote on June 23 to leave the European Union, and some observers expect the currency to fall further against the euro.
That squeezes Opel, which sells many cars manufactured on the continent in Britain -- despite its two factories in the island nation.
GM reported its first quarterly profit in Europe since 2011 between April and June this year.
But Brexit could hold the group back from booking a profit across Europe for a whole year -- its stated objective which has eluded the company over the past 16 years -- it warned at the end of July.
GM estimates it could be $400 million worse off than if the Brexit vote had never happened.
Chief financial officer Chuck Stevens said in July that car sales in Britain could fall by five percentage points.
"This is another speed bump along the way, but we're just going to have to deal with it," he added.
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