Ms Barra said that the new model will be produced at Opel’s headquarters in Rüsselsheim by the end of the decade, following an investment of €245m.

She also announced additional investments of more than half a billion euro in the engine and transmission plants in Rüsselsheim, Kaiserslautern and Tychy (Poland), enabling Opel to move to the next stage of its powertrain offensive with fuel efficient engines and transmissions.

‘Opel is of high strategic importance for GM. The product offensive with 27 new models and 17 new engines has enjoyed a very successful start. These additional investments will help the brand shine again and further strengthen our position in Europe. They are a clear sign of GM’s commitment to Opel, to Germany and to Europe,’ said Ms Barra.

Opel Group CEO Dr Karl-Thomas Neumann greeted the announcement: ‘General Motors and Opel are closer than ever before.’ He added that the additional investments are further proof of the excellent cooperation between Opel and GM.

Dr Neumann also announced that a third shift will be established at the plant in Eisenach as of mid 2015. ‘This is good news for Eisenach as we are enjoying strong demand for the ADAM and the new Corsa.’