Opel will invest €130 million ($175.4 million) in its German engine and parts plant in Kaiserslautern to buy new tooling and machinery, the automaker said in a statement today.

The factory, opened in 1966, will use the money to produce body and chassis parts for the next-generation Astra compact and Insignia mid-sized cars, as well as to build 2.0-liter diesels starting in October 2014 that comply with Euro 6 emissions rules.

U.S. parent GM has pledged to invest 4 billion euros in money-losing Opel by the end of 2016 to support new model launches, renewing a commitment to its ailing European brand.

Opel has four plants in Germany — in Kaiserslautern, Ruesselsheim, Eisenach and Bochum. Earlier this year the company approved the closure of the Bochum factory, which will be the first German car plant to close in decades when production is shut down by the end of next year