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.
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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.
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