General Motors Russia Signs MOU to Expand Production

General Motors Russia Signs MOU to Expand Production

MOSCOW, Russia - GM Russia has signed a memorandum of understanding (MOU) with Russia’s Ministry of Economic Development stating that it intends to meet new local regulations for automotive industry assembly.

The MOU forms the basis for an agreement to be finalized before May 31, 2011, to establish or modernize production facilities in Russia. GM’s goal is to produce up to 350,000 vehicles annually and reach an average component localization rate of 60 percent.

In accordance with the MOU, GM can meet volume and localization requirements by using either its own local production facilities or those of its partners. GM already has an extensive manufacturing footprint and partnerships in Russia.

Jim Bovenzi, President and Managing Director of GM Russia and CIS, said: “We are focused on expanding our production capacity in Russia, which is a key strategic market for GM. The MOU offers us an opportunity to accelerate our growth in this market. We will work diligently to come to a final agreement.

General Motors signals its intention to comply with new regulations regarding localization