FRANKFURT--General Motors Co. (GM) will invest more than 500
million euros ($627 million ) in its German and Polish sites to
build new engines and transmission products, its European unit Adam
Opel AG said Thursday.
Opel said the U.S. carmaker will invest in its Ruesselsheim and
Kaiserslautern sites in Germany and in its Tichy plant in
Poland.
GM also reiterated its plans to build a new SUV-model at its
headquarters in Ruesselsheim for which it is investing around
EUR245 million, Opel said.
"These additional investments will help renew the brand's appeal
and strengthen our position in Europe," GM Chief Executive Mary
Barra said. "They are a clear declaration of belief by GM to Opel,
to Germany and to Europe."
In September, Opel said it would cut production in Russia in
light of weakening sales there. GM was banking on strong growth in
Russia and recovery in Europe after six years of declining sales to
pull the company's European business back into profit by 2016. Opel
pulled out of fast-growing China to focus its resources on Europe
and Russia.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
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