"We will make a significant investment in Opel's product portfolio," Karl-Friedrich Stracke said at an automotive industry event on Thursday.

"I noticed with interest that some of our key competitors have announced plans to cut product investment spending."

Italian carmaker Fiat (FIA.MI) said last week it was cutting capital expenditure in Europe by 500 million euros ($635 million) this year because of a protracted market slump.

Stracke's comment came as GM and German labor union IG Metall try to hammer out a plan to restructure the loss-making operations of Opel. He was due to present a Europewide plan to Opel's supervisory board on June 28.

Investors have been focused on the turnaround at Opel, which GM opted to keep in 2009 after halting a planned sale.

GM has lost money in Europe in the past 12 years, including $747 million last year, and has said the losses could continue for another two years.

The world's largest automaker, which has scrambled to cut costs in the region, has been unable to shed Opel's working-class image in Germany and move upmarket, where debilitating incentive wars are less common.

Stracke said on Thursday Opel's future pricing strategy would focus on affordability.

He also said Opel would announce next month a cooperation with the Gefco, the car delivery group of French automaker Peugeot Citroen (PEUP.PA), with whom GM is forming an alliance.

($1 = 0.7873 euro)

(Reporting by Christiaan Hetzner; Writing by Edward Taylor and Maria Sheahan)

• A Permanent Economic Emergency