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

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
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