The biggest benefactor of the investment is GM Auto, a joint-venture the automaker operates to build sedans, wagons and hatchbacks like the Chevrolet Cruze (pictured) and Opel Astra in St. Petersburg. The plant's capacity is set to increase from 98,000 vehicles currently to 230,000 in three years. GM will also hire an additional 1,500 workers to assemble the vehicles.
GM's reversal in Russia is part of a an industry-wide push away from relying on distant assembly plants to supply the world's markets.
"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," Chairman and CEO Dan Akerson said in a statement released to the media by the automaker.
"Our growing investment is the strongest possible endorsement by General Motors of our intent to make Russia a significant part of our international operations."
The investments will increase GM's Russian capacity over the next five years to 350,000 cars annually compared to 200,000 last year.
Russia has proven to be a strong market for the Michigan automaker; last year, sales were up 53 percent for its Chevrolet, Opel and Cadillac divisions to 243,265 vehicles.
