Industryweek 2770 Gm Logo Promo

Report: General Motors Plans $1 Billion Expansion of Russian Factories

Aug. 29, 2012
General Motors Co. will invest $1 billion in its Russian plants by 2018 to build more cars for the expanding market, a GM executive said Wednesday.

General Motors Co. (IW 500/4) will invest $1 billion in its Russian plants by 2018 to build more cars for the expanding market, a GM executive said Wednesday.

"We will invest an additional $1 billion into Russia, expand the capacity of the plant in Saint Petersburg to 230,000 cars per year and of the joint enterprise with AvtoVAZ in Togliatti to 120,000," said Jim Bovenzi, the president of GM Russia, as quoted by Interfax news agency in Russian.

The automaker's current Russian production capacities at the two locations are 98,000 and 95,000 vehicles per year, respectively, Bovenzi said.

The company also operates a factory in Russia's western exclave of Kaliningrad.

GM's total Russia investment has reached $500 million, Bovenzi said.

Russia's car market has expanded over the last decade to become one of the biggest in the world and second only to Germany in Europe. In 2011, sales grew by an annualized rate of 39% to reach 2.65 million cars, according to a report by Ernst and Young.

Copyright Agence France-Presse, 2012

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

Machine Learning and Predictive Analytics Guidebook for Engineers

Sept. 27, 2023
Leverage Domain Expertise to Drive Optimization – Without Needing a Data Scientist.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!