General Motors to invest $1 billion in Russia within 5 years

Article by Christian Andrei, on August 30, 2012

General Motors’ head of international operations Tim Lee confirmed plans for a $1 billion investment over the next five years to increase the production in Russia of cars as well as components. Lee said that the market in Russia has one of the fastest growths in the world. Lee said that GM will increase its production capacity in Kaliningrad, St. Petersburg and Togliatti.

It also aims to boost its sourcing of components locally. In Russia last year, car sales had increased by 40% to 2.5 million, reversing losses experienced after the credit crunch, with foreign brands built in Russia going up by 70% to exceed 1 million. The pace of growth has slowed down but it is still in double digits. Foreign carmakers like GM, which is No. 2 in Russia in terms of auto sales, want to increase production.

GM began its expansion project last June of the factory in St. Petersburg, where it aims to more than double production to 230,000 vehicles annually. The plant produces the Chevrolet Cruze sedan and the Opel Astra hatchback.

Part of the expansion includes the boost in Astra sedan production. Furthermore, Lee said that GM will increase the output of the budget Chevrolet Niva sport utility vehicle, which is a joint venture with Russia's AvtoVaz. The Niva production would increase to 120,000 from 70,000, raising the total production of GM brands in Russia to 350,000 vehicles each year.

Topics: gm, russia, investment

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries