General Motors to invest $5.2 billion in Opel by 2016

General Motors’ Chairman and CEO Dan Akerson recently made announcement that the company plans to invest Euros 4 billion (5.2 billion USD) in Opel in the next four years.

There were rumors earlier that GM may sell Opel to PSA Peugeot Citroen but the CEO denied the rumors stating that the German marquee was not for sale earlier in the year.

Recently Akerson confirmed the news at a press conference and stated that GM was fully supportive of the turnaround plan of Opel and for that it will invest the above mentioned amount by 2016. However he did not mention anything about drastic measures for Opel such as closing factories to make Opel profitable in coming years.

As per earlier reports, Opel will attempt to cut down on costs by around $500 million by 2015 and would also launch 23 new models and 13 new engines in the coming four years. They will also focus on collaborating with PSA for developing three new vehicle architectures jointly.