General Motors was to sign later on May 29 an agreement with Russian authorities for the construction of an auto factory, the Russian economic development ministry said.
GM already has a factory owned jointly with Russian company Avtovaz at Togliatti on the Volga river which makes Chevrolet Niva and Chevrolet Viva vehicles.
Foreign manufacturers are rushing to announce the construction of factories in Russia in order to benefit from strong demand from Russian consumers and from favorable customs regulations regarding the importation of auto parts. These arrangements are expected to be ended when Russia joins the World Trade Organization.
German manufacturer Volkswagen was also expected to sign an agreement on May 29 with Russian authorities for the establishment of its first factory in Russia. The most recent such announcements have been made by Nissan and Toyota of Japan.
Copyright Agence France-Presse, 2006