GM's New CEO Asserts Support for Opel

General Motors Co. CEO Mary Barra says Opel is a "vital part" of the company and will build an all-new model at its production complex in Russelsheim, Germany.

Barra tells reporters she chose Opel as her first overseas visit since becoming CEO on Jan. 15 to underscore GM's commitment to the unit.

The U.S. company came close to selling Opel in 2009. It later changed its mind and has since pledged €4.4 billion in investments to streamline operations, upgrade Opel's product lineup and make the unit profitable by the end of 2016.

Barra declined to describe the new vehicle planned for Russelsheim, which current makes Astra small sedans and flagship Insignia cars. Last spring GM said Russelsheim also will make the Zafira MPV as production of that vehicle shifts from Opel's factory in Bochum, Germany.

Opel has posted net losses of some €14 billion over the past 14 years. GM announced in December it will stop marketing its main-market Chevrolet vehicles in western Europe in 2016, thus removing them as direct competitors to Opel models.