General Motors has decided to make an investment of around $1 billion in the coming five years with the aim to swell car and component fabrication in the Russian market.
Company’s head of international operations Tim Lee stated that Russia is one of the fastest developing automobile markets in the globe.
Jim Bovenzi, the president of GM Russia, stated, “We will invest an additional $1 billion into Russia, expand the capacity of the plant in Saint Petersburg to 230,000 cars per year and of the joint enterprise with AvtoVAZ in Togliatti to 120,000.”
Prior to an yearly auto show in Moscow, Lee stated that General Motors Co. which manufactures automobiles in St. Petersburg, Kaliningrad as well as Togliatti, will invest the funds to boost production capacitance and in sourcing local constituents.
The amount of cars sold in the Russian market climbed up 40% in 2011 to 2.5 million, overturning losses registered after the credit crisis, with foreign brands made in Russia jumping 70% to hit 1 million.
Growth has de celeratedin 2012 but stays in double figures, and foreign car manufacturer sincluding GM – which stands second in the Russian market by car sales – are eyeing to further build up production.
The Detroit-based group, which has recovered from a spell in insolvency, commenced work during the month of June on the development of its facility in St Petersburg, where it proposes to increase productivity by two folds to 230,000 vehicles on an annual basis.
The St Petersburg facility constructs the Chevrolet Cruze sedan in addition to the Opel Astra hatchback, and the growth will append fabrication of the Astra sedan.