GM already has a track record in Russia having produced the Chevrolet-Neva offroader with the country's leading automotive company, AvtoVaz, since 2001 and opened 48 dealerships in 24 towns and cities.
But now GM is set to become the latest foreign carmaker to open its own plant in Russia, following in the wake of U.S. giant Ford and France's Renault, which opened plants near St. Petersburg and Moscow respectively in 2002 and 2005. Germany's Volkswagen signed an agreement to set up an assembly plant in central Russia at the end of May and Japan's Nissan put pen to paper earlier Tuesday on opening another plant near Russia's second largest city.
GM said the $115-million plant, whose foundation will be laid in the industrial area of Shushary, would annually produce 25,000 Chevrolets, Captiva sport utility vehicles and new C class cars. The U.S. giant said it would also create 700 new jobs.
GM also said it would launch a semi-knocked down assembly at a St. Petersburg enterprise in September. The plant will make more than 4,000 cars every year. The company said this production line would come to a halt when the Shushary plant opened in 2008.
GM and St. Petersburg Governor Valentina Matviyenko signed a construction agreement May 29.
