GM will spend 4.2B to build Opel Astra in European plants

STAFF/WIRE REPORTS
FRANKFURT, Germany -- General Motors Corp. said Tuesday that it will spend 4.2 billion on the next generation of its Opel Astra, and chose plants in Germany, Sweden, Poland and Britain to build the new compact vehicle.
The world's biggest automaker did not specify whether its decision would mean any other European facilities would be closed.
It said it would not allocate compact car production to its Antwerp, Belgium, plant beyond 2010, but stressed that no decision had been made to shut the factory.
The new Astra is expected to be available for sale in Europe by 2010 with an estimated annual production of 750,000.
Some industry analysts have speculated that GM may build Astras at its Lordstown complex for sale in North America. The Lordstown complex now produces the Chevrolet Cobalt and Pontiac G5, but GM has scheduled production of those cars there only until June 2009.
Union leaders and management are bargaining new local labor contracts that they hope will persuade GM to keep the Lordstown complex open.
In other news, GM said it plans to ramp up production and sales in India, one of the world's fastest-growing auto markets. It introduced the Chevy Spark -- a mini car -- to Indian customers Tuesday.
GM is also scaling up procurement of low-cost auto components from India to lower costs at its plants in other parts of the world, GM Chairman and Chief Executive Rick Wagoner said.
"It is time to redouble our efforts on manufacturing and marketing here," Wagoner told a group of business leaders ahead of introducing the Spark.
India's rapid economic growth over the past decade has boosted middle-class incomes and driven demand for cars.