GM to extend summer break at St Petersburg site to a month

Article by Anita Panait, on June 19, 2013

General Motors Co. will stop production at its St. Petersburg site in Russia for more than a month in the summer, from July 22 to August 24, 2013. This year’s summer shutdown is longer than in 2012, when GM stopped production for just two weeks at the plant, where it builds the Chevrolet Cruze, Chevrolet Trailblazer and Opel Astra models.

According to GM Russia spokesman Sergei Lepnukhov, the extended summer shutdown was in response to slowing demand in Russia. He disclosed that during the break, GM plans to start expanding the capacity of the St. Petersburg site. The carmaker wants to hike the site’s annual capacity to 230,000 units by 2016 from the current 98,000.

The move comes after GM’s sales in Russia dropped 8 percent to 99,000 in the first five months of 2013, according to the Moscow-based Association of European Businesses (AEB). Following record growth in 2012, the Russian vehicle market is slowing down in response to a cooling economy.

The AEB expects the Russian car market to drop by 5 percent to 2.8 million units this year. GM, meanwhile, is expanding its joint venture with Russian carmarker AvtoVAZ in Togliatti. The partners recently commenced building the $200-million components site that will produce parts for the Chevrolet Niva SUV., which may be unveiled at the 2014 Moscow auto show.

The site will house a body shop with an annual capacity of 120,000 units as well as a press shop. The partners will start production at the site in November 2015. Jeff Glover, GM-AvtoVAZ's outgoing general director, remarked that site will remove “some roadblocks in volumes." The shops are part of the carmaker’s plans to increase its total output in Russia to 350,000 vehicles a year by 2016.

Topics: gm, russia, production

If you liked the article, share on:

Comments

Recommended

Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Honda will be displaying the electrically assisted CUV in their showrooms later this year. This has been confirmed in China at least. Fresh from its debut at the 2017 Shanghai...
by - April 24, 2017
Ferrari surprised everyone at the 2016 Paris Motor Show last month by unveiling five special liveries. There was plenty of excitement when they heard that these liveries will be up...
by - April 24, 2017
The BMW M model, as of today, offers their buyers two transmission options: either a six-speed manual or a seven speed dual-clutch automatic. But rumours have been circulating that these...
by - April 24, 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