GM is about to follow Volkswagen in announcing details of its planned new assembly plant investment in Russia, according to Automotive News Europe, although no official announcement has yet been made.

GM was expected to buy land on Monday 29 May in Shushary, a subsidiary of St.Petersburg. GM would invest €100m in the plant that would initially build the Chevrolet Aveo from SKD kits with an annual capacity of 25,000 units. The cars will then escape a 30% import tariff that is applied on fully built-up imports.

The plant would add welding and painting facilities to move to CKD assembly within two years, according to the newspaper.

GM already has a 41.5% stake in GM-AvtoVAZ, a joint venture with Russia's largest car producer AvtoVAZ, which also owns 41.5% and the European Bank for Reconstruction and Development (EBRD), which has a 17% stake. It produces Chevrolet Niva SUVs and Viva cars at a rate of over 50,000 units a year.

GM also sub-contracts assembly of Cadillac, Hummer and US Chevrolet models to Avtotor in Kaliningrad, and this year will add the Chevrolet Aveo, Lacetti and Epica to Avtotor's line-up.