Development of new city car continues despite rejection of aid request by the German government

Vauxhall Opel is forging ahead with development of its new Junior city car, despite the German government’s recent rejection of a request for 1.1billion euro of support.

Dubbed Junior by insiders, a reference to a 1980s Nova-based concept, the city car will be sold as a sporty alternative to the roomier Agila. It will also spawn an electric version, whose development cost was included in the request.

Vauxhall/Opel has confirmed the Junior project is on track. “Don’t assume that because we’ve taken six months, it has delayed the programme,” said boss Nick Reilly. “We are developing the city car in Germany.”

Reilly was also confident of the company’s future financial security. “Our liquidity is good and our finances are quite reasonable now,” he said.

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