German automobile manufacturer Opel is set to invest EUR4bn to develop new vehicles and engines over the next four years.
The European arm of American automaker General Motors (GM) making the investment to generate profits by mid-decade as well as fix GM's troubled European and Asian units.
General Motors chief executive officer Mary Barra said that the company is sticking to plans for its Opel unit to build an all-new vehicle at the brand's main plant in Germany as part of an effort to restore earnings in Europe.
"I thought it was very important to reinforce in person my commitment, and GM's commitment, to Opel," Barra added.
In December, GM announced plans to withdraw Chevrolet out of Europe in order to expand its Opel brand.
Opel will close its car plant in Bochum, Germany by the end of 2014. In December, it announced that it will produce Zafira Tourer vans at its Ruesselsheim plant starting in 2015. The plant currently produces Insignia mid-sized cars.
