GM to invest $1 billion in Russia in the next five years

According to Reuters, GM plans to expand its vehicle and parts production capacity in Russia and will invest $1 billion in the next five years.

On the eve of the Aug. 29 launch of the Moscow Motors, Tim Lee, president of General Motors International Operations (GMIO), said that the company plans to invest US$1 billion in Russia’s expansion of production in the next five years and seek local supply of spare parts. In addition, General Motors will expand the production capacity of the Chevrolet Niva SUV in Russia. The car is currently manufactured by GM and Volga Automotive joint ventures, and the annual production will increase from 70,000 to 120,000.

Currently General Motors has several factories in Russia, including factories in Kaliningrad, St. Petersburg and Togliatti. The capacity of the Saint Petersburg auto plant will more than double in the future, reaching 230,000 vehicles/year. The plant mainly produces Chevrolet Cruze sedan and Opel Astra hatchback. It will manufacture Astra sedan in the future.

With the expansion of Niva's production capacity, GM's brands will have annual production capacity of more than 350,000 in Russia.