HispanicBusiness

US car giant General Motors plans to invest 4 billion euros (5.23 billion dollars) over the next three years in a bid to turn around its loss-making European offshoot Adam Opel.

"As a global car company, GM needs a strong presence in Europe," GM chief Dan Akerson told a press conference on Wednesday at Opel's headquarters in the German city of Ruesselsheim.

He was speaking ahead of a meeting in Berlin on Thursday with German Chancellor Angela Merkel.

The new investment is to be partly funded by savings generated by the Opel group's growth and cost-cutting program Drive 2022.

The money is expected to be largely used for the development of new models and engines.

GM was "fully supportive of the Opel turnaround plan," Akerson said.

But the Detroit-based GM still plans to close its plant in the Western German city of Bochum at the start of 2015.

This followed last month's vote by Opel workers in Bochum rejecting the company's restructuring plans for the plant.

GM vice-president Steve Girsky said the company regretted the move but accepted the workers' decision.