General Motors Expanding into Russia, Expands St. Petersburg Factory

General MotorsGMUnited States of America, 1998 > present8 models
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has broken ground on an expansion to its factory in St. Petersburg, Russia, that will be finished in 2015. It will increase capacity from 98,000 vehicles now to 230,000 cars a year. It is the largest Russian expansion by GM since it built the St. Petersburg factory in 2008. GM CEO Dan Akerson, Russian Federal Deputy Minister Alexey Rakhmanov, U.S. Ambassador to Russia Michael McFaul, and former U.S. Secretary of State Dr. Henry Kissinger were on hand at the groundbreaking. 

When finished, the factory will produce ChevroletChevroletUnited States of America, 1911 > present82 models
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and OpelOpelGermany, 1863 > present85 models
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models, including the AstraOpel Astra Gen.4 [J/D]Germany, 2010 > 2015194 versions
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. It will employ 4,000 people when it is completed. 

"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. The global vehicles that we produce and the manufacturing systems that we are putting in place are creating long-term benefits for Russia’s automotive industry," said Akerson.

GM is planning further investments of $1 billion over the next five years. By 2015, it will have a 350,000 vehicle capacity in Russia partially due to its partnership with GM-AvtoVAZ.