GM opens $300 million Russian plant to offset U.S. auto slump

**GMCSonoma** · 11-07-2008, 11:25 AM

GM opens $300 million Russian plant to offset U.S. auto slump

General Motors Corp. opened a $300 million factory in Russia as it looks to compensate for slumping sales in western Europe and North America, Bloomberg News reported today.

Located on the outskirts of St. Petersburg, the plant will produce 70,000 Chevrolet Captiva sport-utility vehicles and the Opel Astra, with plans to manufacture the Chevrolet Cruze compact car next year, the Detroit automaker said.

"Our strategy is to become the leading manufacturer in Russia," Carl-Peter Forster, GM's chief for Europe, told reporters during the plant opening today. "For us Russia is not an emerging market. Russia emerged long ago."

ARTICLE CONTINUES HERE!

Clownzilla · 11-07-2008, 11:33 AM

Well, GM is doing the right thing here. They have to make money somewhere and Russia is a promising market. The Russians and Chinese have not been poisoned by all the GM negativity projected by the doomsayers here in the USA.

**nadepalma** · 11-07-2008, 12:21 PM

Good news here. A little bright spot in today's sad news cycle.

However, while I welcome the investment, I'm hoping that our relations with Russia don't turn sour in the months and years ahead. Reports over the last few months have Russia moving toward some strained relations with the US -- let's hope this doesn't hurt GM in the next few years...

t-rex · 11-07-2008, 12:24 PM

Quote:

Originally Posted by Clownzilla

The Russians and Chinese have not been poisoned by all the GM negativity projected by the doomsayers here in the USA.

No, the Russians and Chinese are being offered products the buyers on those markets want.

It's sickening to think Russkies will get the Cruze before we do...

MCGARRETT · 11-07-2008, 01:31 PM

Ok, fair enough, what do YOU want or think that buyers want in this market?

i.e. as the Oldsmobile ads used to say, "How can we build one for you?"

Looking at how the majority of automakers are down right now, I am guessing that the US consumer wants...nothing?

Because when the living gods, meaning Toyota, Honda, Nissan, Mazda, etc are all also posting pretty big sales losses I am having trouble seeing who has the "magic stick".

johnstarnes · 11-07-2008, 01:46 PM

Quote:

Originally Posted by nadepalma

Good news here. A little bright spot in today's sad news cycle.

However, while I welcome the investment, I'm hoping that our relations with Russia don't turn sour in the months and years ahead. Reports over the last few months have Russia moving toward some strained relations with the US -- let's hope this doesn't hurt GM in the next few years...

Yes that was my first thought....with the Bush regime insisting on keeping them out of the WTO, and installing multiple missiles systems along their borders (imagine "defensive" Russian missiles systems along our Canadian and Mexican borders against the wishes of the people of both countries!) I fear we are moving from being allies with Russia in the Clinton years to being enemies again...so I hope that GM is not pinning TOO many of their hopes on their plants within Russia.

mgescuro · 11-07-2008, 02:18 PM

I'm not sure this is the right move!!

Can't Asian and European plants pick up the slack and provide product for Russia???
Or is there some tax implication for importing the cars into Russia?

t-rex · 11-07-2008, 02:27 PM

Quote:

Originally Posted by mgescuro

I'm not sure this is the right move!!

Can't Asian and European plants pick up the slack and provide product for Russia???
Or is there some tax implication for importing the cars into Russia?

Russia has substantial tariffs on built-up vehicles. Like India, it's more or less a "gotta build 'em there to sell 'em there" market.

Copcarz · 11-07-2008, 04:32 PM

It would be nice if US workers could build and export these vehicles. It would be a major boost to the economy here.

wildgoosechase · 11-07-2008, 07:16 PM

I wonder if we will see the day that US factories are shut down and all Chevys come from Russia?

Stéphane Dumas · 11-07-2008, 07:33 PM

Quote:

Originally Posted by wildgoosechase

I wonder if we will see the day that US factories are shut down and all Chevys come from Russia?

who knows? And we could imagine being shipped by train by crossing a future Trans-Bering tunnel/bridge.... http://en.wikipedia.org/wiki/Bering_Strait_bridge

Joe in T.O. · 11-07-2008, 09:41 PM

Well, I am sure that will go far for the Russians economy. Good for them.

jry · 11-08-2008, 08:24 AM

Well, comrades, this may not be such a great thing. Russia is now in a slump as they wasted all of their oil profits on the war machine. With oil prices dropping, the money is no longer growing on the tree.

Bravada · 11-08-2008, 09:15 AM

Car sales have little to do with international relations and much more with building cars that people actually want. Russians have still very strained relations with Japan (over Sakhalin and a myriad other things), yet they buy Japanese cars in bulk, same for South Korea - they are one of the world's last allies of Kim Jong Il, and many interests less than dovetail, yet Hyundai is Russia's no. 2 bestselling make.

skylark68 · 11-08-2008, 01:55 PM

GM could probably close all of its remaining factories in the US and start being in the black again...

11-07-2008, 11:25 AM	#1 (permalink)
GMCSonoma GMI Staff Member Join Date: Sep 2004 Posts: 10,053	GM opens $300 million Russian plant to offset U.S. auto slump GM opens $300 million Russian plant to offset U.S. auto slump General Motors Corp. opened a $300 million factory in Russia as it looks to compensate for slumping sales in western Europe and North America, Bloomberg News reported today. Located on the outskirts of St. Petersburg, the plant will produce 70,000 Chevrolet Captiva sport-utility vehicles and the Opel Astra, with plans to manufacture the Chevrolet Cruze compact car next year, the Detroit automaker said. "Our strategy is to become the leading manufacturer in Russia," Carl-Peter Forster, GM's chief for Europe, told reporters during the plant opening today. "For us Russia is not an emerging market. Russia emerged long ago." *ARTICLE CONTINUES HERE!* __________________ GM dealer parts manager...for a lot of years! *Please post all tech questions to the GMI Tech Forum, not my message box! Thanks*!

11-07-2008, 11:33 AM	#2 (permalink)
Clownzilla 2.4 Liter SIDI ECOTEC Join Date: Aug 2006 Posts: 388	Re: GM opens $300 million Russian plant to offset U.S. auto slump Well, GM is doing the right thing here. They have to make money somewhere and Russia is a promising market. The Russians and Chinese have not been poisoned by all the GM negativity projected by the doomsayers here in the USA. __________________ Current Ride: 2006 SAAB 9-5 proudly NOT made by the UAW-CAW.

11-07-2008, 12:21 PM	#3 (permalink)
nadepalma GMI Staff Member Join Date: Jan 2003 Location: NJ Posts: 6,688	Re: GM opens $300 million Russian plant to offset U.S. auto slump Good news here. A little bright spot in today's sad news cycle. However, while I welcome the investment, I'm hoping that our relations with Russia don't turn sour in the months and years ahead. Reports over the last few months have Russia moving toward some strained relations with the US -- let's hope this doesn't hurt GM in the next few years... __________________ Email: nadepalma@gminsidenews.com "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!" "You cannot help men permanently by doing for them what they could and should do for themselves" -Abraham Lincoln

11-07-2008, 01:31 PM	#5 (permalink)
MCGARRETT 6.2 Liter LS3 V8 Join Date: May 2003 Posts: 3,595	Re: GM opens $300 million Russian plant to offset U.S. auto slump Ok, fair enough, what do YOU want or think that buyers want in this market? i.e. as the Oldsmobile ads used to say, "How can we build one for you?" Looking at how the majority of automakers are down right now, I am guessing that the US consumer wants...nothing? Because when the living gods, meaning Toyota, Honda, Nissan, Mazda, etc are all also posting pretty big sales losses I am having trouble seeing who has the "magic stick". Last edited by MCGARRETT : 11-07-2008 at 01:41 PM.

11-07-2008, 02:18 PM	#7 (permalink)
mgescuro R2-D2 Astromech Droid Join Date: Jan 2003 Location: San Francisco Bay Area Posts: 28,187	Re: GM opens $300 million Russian plant to offset U.S. auto slump I'm not sure this is the right move!! Can't Asian and European plants pick up the slack and provide product for Russia??? Or is there some tax implication for importing the cars into Russia? __________________ 2000 Saab 9-5 Aero 1995 Mercedes C280 1994 Jaguar XJ6 ...when all hope is gone, you know sad songs say so much... GMReinvention.com Cadillac: The Art of Irrelevancy *SAN FRANCISCO 2020!!*

Remove Advertisements Sponsored Links
GM Inside News Forum Advertisement

11-07-2008, 04:32 PM	#9 (permalink)
Copcarz 2.4 Liter SIDI ECOTEC Join Date: Aug 2004 Posts: 102	Re: GM opens $300 million Russian plant to offset U.S. auto slump It would be nice if US workers could build and export these vehicles. It would be a major boost to the economy here.

11-07-2008, 07:16 PM	#10 (permalink)
wildgoosechase 3.0 Liter SIDI V6 Join Date: Feb 2005 Posts: 554	Re: GM opens $300 million Russian plant to offset U.S. auto slump I wonder if we will see the day that US factories are shut down and all Chevys come from Russia? __________________ OPEC's greatest fear is America's amber waves of grain

11-07-2008, 09:41 PM	#12 (permalink)
Joe in T.O. 3.6 Liter SIDI V6 Join Date: Oct 2005 Location: Toronto Drives: 2002 Trailblazer & 1970 GTO Convertible 2007 Ava Posts: 1,154	Re: GM opens $300 million Russian plant to offset U.S. auto slump Well, I am sure that will go far for the Russians economy. Good for them.

11-08-2008, 08:24 AM	#13 (permalink)
jry 6.0 Liter L76 V8 Join Date: Jun 2005 Location: michigan, the incredible shrinking state Drives: '08 Vette LT2, '09 Escape Hybrid, '07 Expy EL, Posts: 2,164	Re: GM opens $300 million Russian plant to offset U.S. auto slump Well, comrades, this may not be such a great thing. Russia is now in a slump as they wasted all of their oil profits on the war machine. With oil prices dropping, the money is no longer growing on the tree. __________________ '09 Escape Hybrid, '08 LT2 Vette, '07 Expy EL, Eddie Bauer, '96 Fleetwood 31' motorhome, '02 saturn L100 tow car. Good night and good luck.

11-08-2008, 09:15 AM	#14 (permalink)
Bravada GMI Europe Correspondent Join Date: Nov 2004 Location: Warsaw, Poland Posts: 13,836	Re: GM opens $300 million Russian plant to offset U.S. auto slump Car sales have little to do with international relations and much more with building cars that people actually want. Russians have still very strained relations with Japan (over Sakhalin and a myriad other things), yet they buy Japanese cars in bulk, same for South Korea - they are one of the world's last allies of Kim Jong Il, and many interests less than dovetail, yet Hyundai is Russia's no. 2 bestselling make.

11-08-2008, 01:55 PM	#15 (permalink)
skylark68 4.6 Liter Northstar V8 Join Date: Sep 2006 Location: Pearland, TX Drives: 1989 GMC Suburban 1968 Buick Skylark 1972 Corvet Posts: 1,544	Re: GM opens $300 million Russian plant to offset U.S. auto slump GM could probably close all of its remaining factories in the US and start being in the black again... __________________ The Mechanic: You'd have yourself a real street-sweeper here if you put a little work into it. G.T.O.: I go fast enough. The Driver: You can never go fast enough.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode