MUNICH -- General Motors Co. said it will invest 4 billion euros ($5.2 billion) in Opel by the end of 2016 to support new model launches, renewing its commitment to its money-losing European division.
"As a global automotive company, GM needs a strong presence in Europe -- both in design and development as in manufacturing and sales," GM CEO Dan Akerson said today in a statement.
"Opel is key to our success and enjoys the full support of its parent company," he said.
GM's board is holding its quarterly meeting today and tomorrow at Opel's headquarters near Frankfurt as the carmaker looks at the efforts of its Opel unit to become profitable.
Opel's European operations have lost $18 billion since 1999, including $1.8 billion last year.
Opel and UK sister brand Vauxhall are introducing new models to counter slumping sales including the Adam minicar, Mokka SUV and Cascada convertible. The unit said it plans to introduce 23 new or refreshed models and 13 new powertrains by 2016.
Opel's 10-year plan, called DRIVE 2022, foresees a return to profitability by the middle of the decade.