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General Motors Co.’s European division said Tuesday it plans to invest EUR11 billion by 2014 on its model line-up as part of a complex turnaround plan aimed at reaching break-even in 2011 and returning to profitability in 2012.

GM Europe President Nick Reilly confirmed that Opel Tuesday applied for EUR2.7 billion in loans and loan guarantees from European governments to finance the wide-ranging restructuring, and had received a “reasonably good response” to the company’s request for state aid.

Reilly said under the EUR11 billion investment plan, eight new vehicles would be launched this year and another four next year to renew the model range. He said EUR1 billion would be invested on fuel-efficient engines and drive trains. Reilly said Opel had intensified efforts to launch a new entry-level car below the compact Corsa model and aims to strengthen its light-commercial vehicles business.

Funding of EUR3.3 billion is needed to see GM Europe through the revamp and run the business during that period. GM already has contributed $600 million as part of this financing plan.

“We are not looking for grants, but for loans and loan guarantees,” Reilly said, adding that in a normal market environment Opel would have sought funding from banks, “but in the current situation this option is not available” and “many car makers have applied for support from governments.”

Auto makers have been hard hit by weak demand for cars amid the economic downturn. State-backed scrapping initiatives revived demand in Europe last year, but European car makers now are bracing for a market downturn as the boost from incentives is waning.

Last month, GM injected EUR650 million into Opel to provide sufficient liquidity, and Reilly has rebuffed calls for a higher financial contribution from the parent company. He said GM’s funds are essentially U.S. taxpayer money and that “the U.S. would expect Europe to support” the operations there rather than spending U.S. taxpayer money in Europe.

The restructuring plan for GM’s German Adam Opel unit and its British brand Vauxhall was initially expected to be presented in December, but faced several delays in recent weeks after GM’s decision to close the Belgian plant in Antwerp revived a dispute between the division’s new management and labor unions.

Reilly reiterated that GM plans to cut around 8,300 jobs in Europe from its 48,000-strong work force and reduce capacity by 20%.

The closure of the Antwerp plant will result in 2,377 job losses, while 1,799 jobs will be cut from GM’s Bochum plant in Germany. Only the Ellesmere Port plant in the U.K., the Gliwice plant in Poland, the Aspern plant in Austria and the Szentgotthard plant in Hungary will avoid job losses.

The plan has to be cleared by the Opel supervisory board and GM still has to finalize negotiations with unions.

GM has applied for loans from the governments of European countries with GM plants.

German Economics Minister Rainer Bruederle said GM had asked Germany’s government and German states with Opel sites for EUR1.5 billion in aid, while other European countries with Opel sites had been asked for the other EUR1.2 billion.

It was unclear what Germany might offer. However, Germany’s powerful labor union IG Metall said in a statement it opposes GM’s plan and doesn’t support the request for state aid. IG Metall said the plan doesn’t give Opel a sustainable future and demanded that the Antwerp plant won’t be closed.

The U.K. government said it was still discussing the potential support it might offer GM after studying the auto maker’s plans.

“Government support would have to be on the basis of a fully funded business plan and proposals that recognize the commercial logic of maintaining long-term production in the U.K.,” said a spokeswoman for the U.K.’s Department for Business, Innovation and Skills.

Business Secretary Peter Mandelson last month said the U.K. government would be prepared to support Vauxhall and has the funds ready for a “major investment” that could be in the region of several hundred million pounds.

The European Commission will remain “vigilant” to ensure that any state aid given to the auto maker complies with European Union rules, a commission spokesman said. EU competition commissioner Neelie Kroes said last year that a preliminary plan laid out by GM to restructure its European units Opel and Vauxhall didn’t appear to involve illegal state aid from EU national governments.

-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512; christoph.rauwald@dowjones.com