GM Aims To Grow in Russia

Just the Facts:

• GM aims to leverage relationships with several different Russian automakers to boost its presence in that rapidly expanding market.
• Various GM models will be built in Russia by Avtotor, GAZ and AvtoVAZ, as well as in Uzbekistan.
• Among the Chevy models that will be sold in Russia are the Aveo, Cruze, Cobalt, Orlando and even the Camaro.

MOSCOW — General Motors aims to leverage its relationships with several different Russian automakers to boost its presence in that rapidly expanding market. Among the Chevy models that will be sold in Russia are the Aveo, Cobalt, Cruze, Orlando and even the Camaro, with various cars to be assembled in Russia by Avtotor, GAZ and AvtoVAZ, as well as in Uzbekistan by UzDaewoo.

GM recently increased production capacity at its own plant in St. Petersburg to 100,000 cars per year, with the production launch of the Cruze sedan. By 2015, GM intends to boost the plant's annual capacity to 230,000 units.

Jim Bovenzi, president and managing director of GM Russia and CIS, said the company expects its Russian sales this year will jump by 65-70 percent, to 245,000 cars.

In early 2013, GM plans to start sales of the Chevrolet Cobalt in Russia, according to Bovenzi, who said the car will be imported from Uzbekistan. There is no immediate plan to shift assembly to Russia.

Instead, the company plans to launch production of the Chevrolet Aveo model in Russia, initially at the Avtotor plant in Kaliningrad and later at the Gorky Automobile Plant (GAZ) in Nizhny Novgorod.

Next year, GM also plans to start sales of the Cruze hatchback and the new Zafira, as well as the Camaro.

Finally, by 2015, the GM-AvtoVAZ joint venture plans to launch assembly of the new Chevrolet Niva and companion Lada 4x4.

Inside Line says: Despite the ongoing political turmoil, the Russian auto market appears to be rocketing upward.