General Motors broke ground earlier on 22 June for the expansion of GM Auto, its wholly owned manufacturing facility in St Petersburg. Upon completion in 2015, capacity at the plant will more than double to 230,000 vehicles a year from the current 98,000.

GM Auto, which opened in 2008, is the latest site to benefit from an ongoing investment programme of US$1bn that began in 2011 and will be completed in three years’ time. General Motors is also expanding its presence within the GM-AvtoVAZ joint venture plant in Togliatti. The expansion at both plants will result in combined annual Russian production capacity for GM of 350,000 vehicles.

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GM chairman and chief executive officer Dan Akerson, Russian Federal deputy minister Alexey Rakhmanov, US ambassador to Russia Michael McFaul, and former US secretary of state Henry Kissinger joined senior representatives from GM Russia and GM Auto employees at today’s ceremony.

According to GM, once the expansion is complete, 4,000 people will work at GM Auto compared to the current 2,000.

Both Chevrolet and Opel vehicles will be made at the expanded St Petersburg facility, one of which will be the new Astra sedan which is set for a world premiere at the Moscow motor show in August. For now, all production of the new models will be for the Russian market.

“General Motors is embarking on a new era in Russia, one of the world’s fastest-growing vehicle markets, as part of our strategy to build where we sell,” said Akerson.

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“Our growing investment is the strongest possible endorsement by General Motors of our intent to make Russia a significant part of our international operations. Our vision in Russia, as in all of the other markets where we do business, is to design, build and sell the world’s best vehicles,” GM’s CEO added.

Author: Glenn Brooks