FRANKFURT (TheStreet) -- General Motors Opel division plans to invest 11 billion euros ($15.1 billion) over five years to reinvigorate the brand while cutting 8,300 jobs.
In a statement on its Web site, Opel said it applied for loans and loan guarantees from the German government of 2.7 billion euros. Opel's business plan foresees Opel and its sister brand Vauxhall breaking even by 2011 and be profitable by 2012. That is predicated on economic forecasts that 13.4 million cars will be sold in Western Europe this year, 20% less than in 2007. Opel said it "does not believe the market will come back to the levels seen earlier in this century for quite some time." To adjust to these forecasted markets, Opel said it plans to reduce capacity by about 20%. Opel said it will spend 1 billion euros in innovative and fuel-efficient powertrain technology as it introduces a range of new "green" products. GM already has injected 600 million euros into the new Opel/Vauxhall business. In addition, GM provided 650 million euros in advanced payments in January to ensure the business has enough cash. -- Reported by Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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