South Korean automobile manufacturer Hyundai Motor Co. has settled the purchase of General Motors Company car plant in St. Petersburg, as announced in a statement by Hyundai spokesperson Yulia Tikhonravova released on Tuesday.
Hyundai Motors reached a decision to buy General Motors’ auto plant after months of deliberation that stretched all the way back to 2019. The decision was not finalized until July of this year when the automaker company called for the approval of the deal from the Russian anti-trust body.
Hyundai secures the full ownership of the assembly factory after acquiring a 94.83 percent stake in the manufacturing facility, negotiating the final price with GM, and completing other Russian government requirements.
After finishing its construction in 2008, the GM vehicle production facility assembled models such as the Chevrolet Cruze, Opel Astra, and Chevrolet Trailblazer. The GM plant discontinued its production services after opting to withdraw from mainstream markets in Russia.
GM’s former site is set out to be Hyundai’s second manufacturing unit in St. Petersburg, teaming up with the first plant located in the city’s industrial zone, Kamenka. The Hyundai Kamenka factory, which has been manufacturing since 2011 in partnership with Kia, produces a variety of vehicular models including Solaris, Kia Rio subcompacts, and the Creta crossover.
Possible Scenarios of Utility
“We are working on possible scenarios to use this asset,” stated the head of Russia’s Hyundai division, Alexey Kalitsev. The auto plant from GM has a yearly production capacity of approximately 100,000 automobiles, while the Kamenka factory produces around 200,000 automobiles per year.
Although spokesperson Tikhonravova announced that the start of the production is still pending due to the pandemic, the newly purchased GM automotive factory is preparing to produce other crossovers such as the Hyundai Tucson.
To aid the steady growth of its sales in Russia, the South Korean automaker also plans to boost the manufacture of the Creta, which is popular for its affordability. Hyundai together with Kia became the top-selling automotive manufacturer in the Russian market after selling more than 400,000 vehicles last year.
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