Opel plans Poland diesel factory expansion image

As the US automaker seeks a faster return to profitability for its European Opel unit, general Motors will invest around 250 million euros ($342 million) to expand the Opel diesel-engine facility in Tychy, Poland.

Since 1999, GM has accounted in Europe for loses that total more than $18 billion and to ensure the survival and expansion of the Opel/Vauxhall units has decided to withdraw the Chevrolet brand from the region.

The company announced in a statement that their factory plan upgrade includes the preparation to start manufacturing a new 1.6-liter four-cylinder diesel engine from 2017, destined to equip Opel and Vauxhall’s cars.

“The new mid-sized diesel engine family is an important part of our engine offensive,” Peter Thom, head of manufacturing at Opel, said in the statement. “We appreciate the good quality and high efficiency of our Polish location and look forward to implementing this exciting project.”

According to GM the planned expansion of their engine factory is also supported by Poland’s government, through the Polish Ministry of Economy and once completed, the expanded factory would have an installed annual capacity of around 200,000 engines.

Because of planned new rules regarding emissions, Opel is in the midst of a 4 billion euros investment throughout the four years to 2016, seeking to develop 13 engines and 23 vehicles.

Via Automotive News Europe