GM to start $1 billion expansion in Russia

June 22, 2012 at 12:23 PM
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ST. PETERSBURG, Russia, June 22 (UPI) -- General Motors said it would more than double its production at its plant in St. Petersburg, Russia, as part of a $1 billion expansion plan.

GM said it would hire 1,500 new workers, allowing the plant to produce 230,000 vehicles per year, up from 98,000.

The company was expected to announce a start to the expansion on Friday, the Detroit Free Press reported.

"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," GM Chief Executive Officer Dan Akerson said. "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, its supply base and its economy."

In Russia, GM sold 74,788 Chevrolets in January through May, up 18 percent from the previous year. Opel sales reached 32,190, a 34 percent jump from the previous year.

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