Business News
General Motors to significantly increase Opel investment
Mar 2, 2010, 8:36 GMT
Ruesselsheim, Germany - US car giant General Motors (GM) is to invest significantly more money into its European subsidiary Opel than previously planned, German-based Opel announced on Tuesday.
Under the revised plans, GM is to pump 1.9 billion euros (2.6 billion dollars) into Opel - up from a planned 600 million euros, Adam Opel GmbH announced in Ruesselsheim.
This would also bring the volume of credits and guarantees requested from European Union states down from 2.7 billion euros to below 2 billion dollars.
The decision means that GM would carry more than half the cost of restructuring Opel, previously estimated at 3.3 billion euros.
The bulk of Opel's production is based in Germany, but it also has plants in Poland, Britain, Spain, Hungary and Austria. A factory in Antwerp, Belgium, is due to be closed over the course of 2010.
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