GM Plans New Line of Low-Price Cars for Europe

Opel CEO Karl-Thomas Neumann tells the Financial Times that General Motors Co. is "definitely" looking at the European market for entry-level cars.

He hints strongly that Opel will introduce a new line of low-cost models under its own name to fill a gap forming as GM phases out its Chevrolet brand in Europe by the end of 2015. Chevy has been represented in Europe primarily by budget-priced small cars supplied by GM Korea.

Neumann says Opel is considering launching a low-cost small SUV and a car smaller than the Opel Astra. Both would be priced to compete with Renault's popular low-cost Dacia brand in a range of about €7,600-€12,000.

The FT notes that Dacia's sales have jumped 61% in the past two years by catering to buyers buffeted by Europe's high unemployment and sluggish economic growth.