Heralded as the most significant development for General Motor’s Russian operations since GM Auto opened in 2008, the Detroit carmaker broke ground on a new expansion plant at its St. Petersburg facility on Friday.
The company said that the move will more than double GM Auto’s annual production capacity from the current 98,000 vehicles to 230,000 vehicles by 2015, while employment at the facility will also increase from 2,500 to 4,000 people.
GM Auto will produce Chevrolet and Opel models for the Russian market, including the new Astra Sedan that will be making its world premiere at the Moscow International Motor Show in August.
The expansion is part of a $1 billion (€790 million) investment in GM’s Russian operations over the next five years that also includes support the increase of production at the GM-AVTOVAZ joint venture in Togliatti, Russia.
Combined with the expansion at the St. Petersburg plant, GM’s total annual Russian production capacity will reach 350,000 vehicles.
“General Motors is embarking on a new era in Russia, one of the world’s fastest-growing vehicle markets, as part of our strategy to build where we sell,” said GM Chairman and CEO Dan Akerson.
“The global vehicles that we produce and the manufacturing systems that we are putting in place are creating long-term benefits for Russia’s automotive industry, its supply base and its economy,” he added.
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