General Motors Corp. said it plans to spend $1 billion in Europe over the next five years to expand industrial capacity and research and development for its car parts division.
The investment by the U.S. carmaker's Automotive Components Group will include building several new production facilities in Europe, said Mark McCabe, the group's European president.The money also will be used to modernize the division's 49 existing plants in Europe, McCabe said. GM expects the European market for car parts to grow from around $60 billion at present to $100 billion by the year 2000, he said.
The forecast assumes that new car sales in Western Europe will rise by 700,00 from 1990 levels to 14.2 million cars a year by 1995. Eastern European demand could add another 3.5 million cars.
Europeans are demanding extras like power steering and air conditioning presently sold on only a small proportion of cars in Europe, he said.