GM to nearly double Russian capacity on high expectations

General Motors believes Russia will become its biggest market in Europe next year.
GM will almost double its car producing capacity in the Russian market when it opens its new $300 million factory in St. Petersburg on Friday.
The plant will add 70,000 units of capacity to the 100,000 already available to GM at joint venture and partner facilities in the country.
It will initially build the Opel Antara and Chevrolet Captiva SUVs. The Chevrolet Cruze lower-medium car will follow at the end of 2009. It will also build the next generation Astra lower-medium car.
"We are fully committed to our Russia growth strategy," said Carl-Peter Forster, president of General Motors Europe, in a statement.
"Russia is poised to become Europe's No. 1 car market for GM as early as 2009. We are the leading non-Russian manufacturer. That's a position we aim to keep."
GM said its sales in Russia increased by 44 percent in the first nine months of 2008, outpacing industry growth of 23 percent and reaching a record total of 256,765 units.
GM's market share has reached a new high of 10.9 percent in Russia, the company said.
In the first nine months of the year, Chevrolet maintained its position as Russia's biggest selling non-domestic brand with sales up 33.5 percent to a total of 175,800 units.
In the same period, Opel was the fastest growing brand in the country with sales up 73 percent to more than 78,000 units.
The new plant, located in Shushary on the outskirts of St. Petersburg, will employ 1700 people.