In the UK, where GM trades as Vauxhall, the new Astra will be manufactured in Ellesmere Port, Cheshire, from 2010. General Motors is trying to compete with Asian firms and rise profits.
The cars in the continent are sold by the brand name Opel. In Europe they sold almost half a million vehicles last year. 12,000 jobs were cut down since 2005 by GM Europe to make regional operations profitable. 12 plants in North America and 34,000 jobs were cut down by the parent company GM in 2005 due to unveiling a $10.6bn net loss.
Bochum in Germany, Gliwice in Poland and Sweden's Trollhattan factory are the sites that would be working on the new car model.
A total of 3bn euros (£2bn) will be invested in the Astra project across Europe, while the UK operations are also expected to get a government grant.