General Motors has decided to further support the ailing European operations by green lighting the production of a sports utility vehicle (SUV) at the main Opel facility in Ruesselsheim, Germany.
According to chief executive officer Mary Barra, the No. 1 US automaker also plans to pour 500 million euros ($626 million) in the future production of car engines at factories in the European region. The carmaker is currently in the midst of implementing a new strategy that would see cost for development and production shared among the global businesses – and part of the plan (revealed back in March) calls for two new models to be produced at the Ruesselsheim factory – one is the now revealed SUV and the other is a Buick-branded model that is only going to be exported to the United States.
In a statement, Barra said, “this SUV will become a second flagship next to the Insignia,” and added that the new investment of 500 million euros for the production of engines across facilities in Europe refers to upgrades designed to build more fuel-efficient powerplants. It also comes on top the already pledged 245 million euros for the new Ruesselsheim models and the 4 billion euros needed to rethink Opel’s ageing product range.