US carmaker General Motors will invest about EUR4bn in European subsidiary Opel through 2016 to assist in launching new models, restore profit and raise market share in the region.
Majority of the investment will be aimed at developing 23 new vehicles and 13 new engines, which would assist the carmaker to break even in Europe by mid-decade.
GM chairman and CEO Dan Akerson said the company needs a strong presence in Europe - in terms of design and development as well as manufacturing and sales.
"Opel is a key to our success and enjoys its parent company's full support," Akerson said.
GM's European operations, which mainly consists of Opel and its UK sister brand Vauxhall, has build up losses of about $18bn since 1999.
GM's new restructuring plan for Europe comprises new models built in collaboration with PSA Peugeot Citroen, in addition to closing of Opel's Bochum plant in Germany.
Adam Opel CEO Dr. Karl-Thomas Neumann said the move would support Opel's 10-year plan DRIVE!2022 that foresees return to profitability by the middle of the decade.
"A large part of the investments are going into the Opel model offensive," Neumann said.
