Production of Vauxhall/Opel’s sub-Corsa city car will commence in 2013 at Opel’s Eisenach plant following a 90 million euro (£76.5m) investment in the facility by General Motors Europe.

“This is a further milestone in the growth strategy for our business,” said Opel/Vauxhall CEO Nick Reilly. “Our 90 million euro investment in the Eisenach plant will significantly strengthen its role within our European manufacturing network, and will offer customers a brand-new model with innovative technology and exciting design.”

The investment will also secure jobs at the plant for “years to come”, said Reilly at today’s press conference in Ruesselsheim.

The new city car has been codenamed ‘Made in Eisenach’ and is described by Opel/Vauxhall as “a small-sized fuel-efficient car” that doesn’t “compromise on technology, design or convenience”. The firm has also said that it could launch an all-electric version in the future.

The CEO also said there were plans to launch a “small SUV” in the coming months, expected to be a facelift of the current Antara.