Opel, the struggling European arm of General Motors Co , took a key step towards returning the brand to long-term profitability after its supervisory board voted in favor of a midterm business plan that included "massive" investments in its model range. The plan also envisages cost cuts, new models and efforts to win new export sales.

"The plan approved today paves the way for a strong future for Opel. GM stands behind Opel and supports management and labor," said GM Vice Chairman Stephen Girsky in a statement. The company has previously said it is working on plans that provide guaranteed jobs for German workers until 2016 in return for postponing pay increases, and the expectation that the plant in Bochum will close after that.

The company commented that it has plans to move into market segments where it has not been represented before, and expand sales in emerging markets. It also expects added savings from its alliance with France's Peugeot Citroen.

Opel