German carmaker Opel, the loss-making subsidiary of US giant General Motors, said on Thursday it plans to launch a new compact car next year in its ongoing drive back to profit.
The new five-door model, Karl, will be launched next summer to complement the Corsa and Adam models, Opel said in a statement.
Karl, named after one of founder Adam Opel`s sons, will be a cheaper and more practical small car alternative to the three-door Adam.
"Karl is a short, snappy and catchy name that represents Opel brand values: German, emotional and approachable," said Opel marketing chief Tina Mueller.
At 3.68 metres (12 feet) long, it will be fractionally shorter than the Adam and priced below both the Adam and Corsa.
The company did not reveal the price, but a source close to the company put it at 10,000 euros ($12,930.
Opel has been running at a loss for years and has embarked on a deep restructuring, closing its plant in Antwerp, Belgium, and its factory in Bochum, Germany, is to shut its doors at the end of this year.
It aims to return to profit by 2016 at the latest.
