Opel Investing $656 Million In Hungary Plant

Subsidiary of General Motors Co. is investing $656 million to expand its engine plant in western Hungary where it will make three new gasoline and diesel engines.

BUDAPEST, Hungary (AP) -- Car maker Opel is investing €500 million ($656 million) to expand its engine plant in western Hungary.

Company vice president Reinald Hoben said Tuesday that the subsidiary of General Motors Co. will begin making three new gasoline and diesel engines there by the end of 2012.

The expansion of the plant in Szentgotthard will add 800 employees to Opel's Hungarian work force of over 600.

Opel had 9.8 percent of the car market in Hungary in 2009. It set up operations in Szentgotthard in 1990.

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