General Motors has given another sign of its commitment to turning around the sales performance at Opel by announcing today it will invest a further 4 billion euros (approximately $5.2 billion) in the struggling European automaker.
The investment, which will span the next four years, is designed to strengthen Opel’s 10-year DRIVE!2022 strategy, which aims to see the automaker return to profitability by the middle of the decade.
Opel has lost $18 billion since 1999, including $1.8 billion last year alone.
DRIVE!2022, which has been instigated by Opel Supervisory Board Chairman Steve Girsky and newly hired CEO Karl-Thomas Neumann, will see the introduction 23 new models and 13 new powertrains over the next four years.
It also calls for the strengthening of ties with PSA Peugeot Citroen Group. General Motors Company [NYSE:GM] and PSA plan to collaborate on a number of projects including the sharing of platforms and engines.
On top of this, the strategy also includes around $500 million in cost cutting annually over the next three years, including the phase out of its plant in Bochum, Germany.
“As a global automotive company, GM needs a strong presence in Europe--in terms of design and development as well as manufacturing and sales,” said GM CEO Dan Akerson, at a press conference in Rüsselsheim, Germany, this morning. “Opel is a key to our success and enjoys its parent company’s full support.”