G.M.'s Opel division plans to invest more than $100 million in a plant in Eisenach to assemble 150,000 cars annually by 1993.
But they look as good or better than competitors, which include the Astra by General Motors's Opel division and the Volkswagen Golf.
The announcement set off a wave of angst in Germany, the home of G.M.'s Opel division.
GM's Opel division was an integral part of the German war effort.
Peter spent most of his early career working for GM's Opel division in Germany as a vehicle tester and suspension engineer.
The Opel division of General Motors already has its own contender in that field, the Opel Zafira.
Other carmakers, including DaimlerChrysler and the Opel division of General Motors, have demanded concessions on wages and work rules, as they struggle to reduce labor costs.
Balt also agreed to sell products from G.M.'s Opel division in Western Europe in October.
Then it thought a gilded version of a sedan from GM's German Opel division might make it as a BMW 3-Series fighter.
It has just produced a "global Cadillac," to be sold in more than 40 countries, and its Opel division in Europe is busy sending designs to new factories on three continents.