Manufacturing facility will produce up to 200,000 vehicles annually for the African and Middle East markets.
Struggling French automaker is cutting 8,000 jobs and closing the Aulnay-sous-Bois factory.
GM puts its 7% stake in French automaker to work to cut costs and turn around business in Europe.
Automakers will make a small van and develop mid-size cars to boost European business.
The struggling automaker announced it would cut 8,000 jobs last week in an effort to cut costs by almost $2 billion.
Job cuts and plant closure part of a restructuring plan to save $1.9 billion a year.
GM takes a 7% stake in the French automaker to push combined purchasing power to $125 billion