April 3, 2007

GM to increase investment and capacity at Russian plant

Zurich, Switzerland – General Motors Europe has announced that it will more than double the originally planned capacity of the new assembly plant it is building in Shushary, near St. Petersburg, Russia. The plant will now be capable of 70,000 vehicles per year.

“Russia is our biggest market for Chevrolet in Europe,” says Carl-Peter Forster, President of GM Europe. “Demand continues to grow and we will be in an even better position to meet that demand when Shushary goes on stream in 2008.”

The Russian vehicle market became the fifth largest in Europe in 2006, with year-on-year growth of 22 per cent. GM sold more than 132,000 vehicles in Russia in 2006, with over 84 per cent of them Chevrolets. In the first two months of 2007, the company sold 25,981 GM vehicles, with 20,805 of them Chevrolets.

GM is investing US$300 million in the project, which will complement existing GM operations in Togliatti, which builds the Chevrolet Niva and Viva, and Kaliningrad, which assembles Cadillac, Hummer and Chevrolet models. The new St. Petersburg plant will produce Chevrolet Captiva SUVs and a new generation of compact cars from knocked-down kits in two shifts, employing about 900 workers, engineers and managers. Start of production is scheduled for the end of 2008.

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