Five-Year Plan: GM to Invest $1 Billion to Expand Russian Operations
With Russia emerging as one of the fastest-growing markets in the world, GM is betting its marbles on the economic growth of the country. The U.S. automaker has announced plans to invest $1 billion to ramp up car and component production at its Russian facilities within the next five years.
GM has plants in the cities of Kaliningrad, St. Petersburg, and Togliatti. If all goes according to plan, all of them will be expanded by 2018. Work already began on the St. Petersburg facility in June, where production will be doubled to 230,000 vehicles a year when the project is finished. The plant currently builds the Chevrolet Cruze and Opel Astra hatch. The Astra sedan will be added as part of the expansion.
The outlook could be good, as the number of cars sold in Russia rose 40 percent to 2.5 million last year with foreign brands soaring to 70 percent to cap 1 million.
Among the other cars seeing a boost in production will also be the Chevrolet Niva SUV, which is being produced in a joint venture with Russia’s AvtoVaz, reports Automotive News. Output would rise from 70,000 to 120,000, bringing GM’s total production in Russia to 350,000 vehicles annually.
Source: Automotive News (Subscription required)