(Reuters) -- General Motors' money-losing European brand Opel is investing 130 million euros ($175.4 million) in its German engine and parts plant in Kaiserslautern to buy new tooling and machinery, Opel said in a statement today.
The factory, opened in 1966, will use the investment to produce body and chassis parts for the next-generation Astra compact car and Insignia mid-sized car, as well as building the Euro 6 generation of 2-liter diesels starting in October 2014.
GM has pledged to invest 4 billion euros ($5.4 billion) in Opel by the end of 2016 to support new model launches, renewing a commitment to its ailing European brand.
Opel has four plants in Germany, in Kaiserslautern, Ruesselsheim, Eisenach and Bochum. Earlier this year the company approved the closure of the Bochum factory, which will be the first German car plant to close in decades when production is shut down by the end of next year.