By Andrew Ganz
Wednesday, Aug 29th, 2012 @ 9:40 am
 
General Motors is so optimistic that the Russian market will continue to grow that it is investing $1 billion to build new vehicle and component assembly plants over the next five years.

Currently, GM has three assembly facilities spread across Russia, but the Michigan automaker is hoping to take advantage of the fast-growing market, whcih grew by about 40 percent last year. Despite its geographic size, Russia falls under GM Europe's authority, which makes it the regional office's fastest-growing major market, especially in comparison to flagging Western Europe.

The automaker's international operations chief, Tim Lee, confirmed the $5 billion investment but he didn't elaborate on just where any new plants will be located. Currently, the automaker is expanding a small and midsize car plant in St. Petersburg, which builds the Chevrolet Cruze and its Opel Astra platform mate. The plant will begin building the Opel Astra sedan once the expansion is complete.

Lee told Reuters that production of the Chevrolet Niva SUV, a rugged and inexpensive four-wheel-drive built in Tolyatti, Russia, in a partnership with AvtoVaz, will nearly double from 70,000 to 120,000 units annually.

Russia is one of Chevrolet's most diverse markets; the bowtie brand's lineup includes everything from the full-size Tahoe SUV to the Daewoo-based Lacetti (which was sold in the United States as the Suzuki Reno and Forenza).