GM doubling new Russia plant capacity

[Ming]

GM doubling new Russia plant capacity



30 March 2007 | Source: just-auto.com editorial team

General Motors Europe president, Carl-Peter Forster, has announced that the world's largest car maker will more than double the originally planned capacity of the new assembly plant it is building in Shushary on the outskirts of Russia's second city, St Petersburg, to 70,000 units a year.

"Russia is our biggest market for Chevrolet in Europe," said Forster. "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%, according to GM, which said it sold more than 132,000 cars there last year, of which over 84% were Chevrolets. In the first two months of 2007, 25,981 GM cars (20,805 Chevrolet) were sold in Russia.

General Motors is investing $300m in the St Petersburg project. The new plant will complement existing GM operations in Togliatti and Kaliningrad.

Source: http://www.just-auto.com/article.aspx?id=90903

[Lewie]

Great news! GM's Euro line is really coming alive!!!

[Butz]

What do they build there? Some GMDATs, probably some rebadged Ladas?

[Ming]

Originally Posted by Butz

What do they build there? Some GMDATs, probably some rebadged Ladas?

From a GM Media Press Release:

5.4.2006

GM to assemble HUMMER H3 and four Chevrolet models for Russian market in Kaliningrad

GM today celebrated the start of production and sales of the HUMMER H3 in Russia at a ceremony at the Avtotor plant in Kaliningrad, Russia. In addition, GM announced the start of pilot production of four Chevrolet models in Kaliningrad.

START OF ASSEMBLY OF HUMMER H3

The opening ceremony was attended by Bob Lutz, Vice Chairman of General Motors. He expressed his satisfaction with the successful start of production and sales of the HUMMER H3 in Russia: "We see Russia as one of the highest potential growth markets for GM around the world. In fact, during the last couple of years we have witnessed the Russian car market’s strong growth and consumers’ increasing interest in vehicle choice. The H3 fits well with our strategy of offering a wide range of vehicles to satisfy this growing demand. Our cooperation with Avtotor has been successful since the initial production of the Hummer H2 in 2004, and we are confident that local production of the HUMMER H3 at Avtotor will place us in a strong competitive position.”

All HUMMER H3 models are equipped with a 3.5L inline-5 cylinder 220hp engine and are available with either a standard manual or optional automatic transmission. The H3 assembled at Avtotor will be sold and serviced by six authorized HUMMER dealers located in Moscow, St. Petersburg and Ekaterinburg.

ASSEMBLY OF FOUR CHEVROLET MODELS FOR RUSSIAN MARKET IN KALININGRAD

The sub-compact Chevrolet Aveo, compact Lacetti, Rezzo family van and Evanda sedan will go into full-scale assembly by the end of spring 2006. The cars will be sold exclusively in the Russian market. Volume is expected to reach approximately 15,000 units this year. The pricing and content of the four models going into production at Avtotor this year will be very competitive within their respective segments.

Chevrolet was the second best selling foreign brand in Russia in 2005 with sales of 66,500 units. Sales in the first three months of 2006 were up over 10 percent on the first quarter of 2005.

GM AND AVTOTOR COLLABORATION SINCE JUNE 2004

GM and Avtotor have been collaborating since June 2004, starting with production of Hummer H2. Currently, there are three GM brands being produced at Avtotor: Cadillac STS, CTS and SRX; Hummer H2 and H3; and the Chevrolet Tahoe and Trail Blazer. The four new Chevrolet models will be produced with SKD (semi-knock down) technology. In 2007, one core model will be produced as CKD (complete-knock down) which will include painting, welding and general assembly operations. “The overall approach in Kaliningrad is a positive move towards expanding our total GM operation in Russia”, said Warren P. Browne, Executive-in-Charge, GM Russia.

[01cavalier]

Even more growth, always great to hear about it. GM does better everywhere outside of the North American market. When it comes to news in foreign markets, I've gotten used to it being positive.

[minnfang]

Wow, check out the precision "fit" of the wheel flares to the rest of the side cladding on that SUV thing.

[t-rex]

Originally Posted by minnfang

Wow, check out the precision "fit" of the wheel flares to the rest of the side cladding on that SUV thing.

That's the Chevrolet Niva, built by VAZ, the folks who brought you the wonderful Lada.

[AndrewGS]

It's always interesting to hear about North American market-designed vehicles being built somewhere else. I knew about the H3 but not about the H2, Tahoe, TrailBlazer, CTS, STS and SRX.

[IROCNROL1]

Great news. Maybe GM can advance capitalism there faster than Putin can regress to communism.

[DmitryKo]

Originally Posted by t-rex

That's the Chevrolet Niva, built by VAZ, the folks who brought you the wonderful Lada.

It's not the stock Chevrolet Niva, it's a custom "tuned" version with additonal plastic moldings and different bumpers and radiator grille. The serial car looks considerably different (see this news item for an example).

[DmitryKo]

Originally Posted by AndrewGS

It's always interesting to hear about North American market-designed vehicles being built somewhere else. I knew about the H3 but not about the H2, Tahoe, TrailBlazer, CTS, STS and SRX.

These cars are not "built" but rather "assembled" from CKD/SKD kits, they do it to evade high import taxes.

BTW the plant will build/assemble the Chevrolet Captiva and the new compact (C-class) sedan being developed in Korea.

[GM_RU]

Originally Posted by DmitryKo

These cars are not "built" but rather "assembled" from CKD/SKD kits, they do it to evade high import taxes.

BTW the plant will build/assemble the Chevrolet Captiva and the new compact (C-class) sedan being developed in Korea.

And Antara and Astra