GM to Invest $4.2B for Production of Next-Generation Compact Car in Europe

17 April 2007

General Motors Europe today announced its plan to allocate assembly of its next-generation compact cars to four manufacturing plants: Ellesmere Port, U.K.; Bochum, Germany; Trollhättan, Sweden; and Gliwice, Poland.

Production of the new vehicle, due to replace the existing Opel Astra range in early 2010, is expected to involve a €3.1 billion (US$4.2 billion) investment and a 30% productivity improvement.

GM is not allocating next-generation production to the Antwerp, Belgium, facility beyond 2010. GM’s Antwerp plant currently employs 4,500 people to produce the 3- and 5-door version, the station wagon and the convertible of the current-generation Opel Astra.

GM is not talking about closing the Antwerp plant, but has as yet made no decision on future production. Independent from future product allocations, current production at Antwerp will be reduced in 2007.

GM is planning for annual production of 750,000 units of the next-generation compact, a 40% increase over the 535,000 produced in 2006.