GM Russia Gearing Up for Annual Production of 350,000 Vehicles

Will significantly expand capacity at its St. Petersburg plant and GM-AVTOVAZ joint venture

2011-06-02


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MOSCOW – General Motors and the Russian Federal Ministry of Economic Development signed an agreement that will result in the significant expansion of GM’s manufacturing capability in Russia.

Over the next five years, GM will increase the production capacity at its wholly owned plant in St. Petersburg to 230,000 vehicles per year and at its GM-AVTOVAZ joint venture in Togliatti to 120,000 vehicles per year, for a combined annual production capacity of 350,000 vehicles. Current production at the two facilities is about 200,000 vehicles annually.

“GM regards Russia as an important strategic market. This agreement will help us expand our operations,” said Jim Bovenzi, President and Managing Director of GM Russia and CIS. “We look forward to offering our local customers more great products that meet their desires and needs.”

Under the agreement, GM will increase its share of locally sourced components to an average of 60 percent and grow its percentage of vehicles with locally sourced engines and transmissions to 30 percent. GM will also expand its engineering, research and development center in Russia, which will enable it to develop products tailored for the Russian market. In exchange for these significant investments in the domestic economy, the Russian government will provide GM lower customs duties on imported components for eight years.

GM’s facility in St. Petersburg will continue to manufacture Chevrolet and Opel models for the Russian market. GM-AVTOVAZ will concentrate on the production of small SUVs and all-new versions of the Chevrolet NIVA and Lada 4X4.

The production capacity increases will create approximately 1,500 new employment opportunities at GM’s St. Petersburg plant and hundreds of new jobs at its joint venture in Togliatti.

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About General Motors

General Motors Company (NYSE: GM, TSX: GMM), one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 202,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries. GM has had operations in Russia since 1992 and markets Chevrolet, Opel and Cadillac models in Russia. The company has a wholly owned manufacturing facility, GM Auto, which was established in St. Petersburg in 2008; a joint venture, GM-AVTOVAZ, which was established in Togliatti in 2001; and a contract assembly operation run by Avtotor in Kaliningrad. GM sold nearly 160,000 vehicles in Russia in 2010 and more than 65,000 vehicles from January to April 2011. Chevrolet has been the most popular non-domestic brand offered on the Russian market since 2007, with 15,626 vehicles sold in April 2011. More information about GM in Russia can be found at www.generalmotors.ru

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