GM to Invest €4 Billion in Opel Over Three Years

General Motors Co. says it will spend €4 billion on plant upgrades and new-vehicle launches for its Opel unit in Europe between now and 2016.

"GM needs a strong presence in Europe," says CEO Dan Akerson, who describes Opel as the "key to our success." The company continues to refute rumors that it plans to sell Opel.

The unit aims to become profitable by about 2015. Akerson tells reporters in Germany that GM is "more convinced than ever" of Opel's ability to revive.

The unit's turnaround plan centers of on reducing capacity, improving efficiency and launching 23 updated models and 13 powertrains over the next three years. Some of the new product is being co-developed with PSA Peugeot Citroen under the partnership launched by the two companies early last year.

GM's board is holding its quarterly meeting at Opel this week as a show of support for the beleaguered division, which has lost $18 billion since 1999.