Hyundai has closed its purchase of the GM plant in St Petersburg, but the production start date has not been determined. The announcement was made during a company press-conference.
Financial details and company plans related to the production site were not disclosed.
Hyundai can shift to the new site the production of the models, currently made on Autotor plant in Kaliningrad.
Hyundai’s plant in Shushars (former GM plant) has a long-term profile, so it is looking at a 5-8 year period. It’s too early to speak about any specific models and volumes, the company representative said.” He said the company will be ready to present a production program in July 2021.
PSR Analysis: This event follows the general trend where US automakers are being replaced by Asian competitors in the Russian market. The Russian Government has strict requirements for global companies planning to access the domestic market regarding local production and technologies transfer. Sanctions also area a factor in this situation. PSR
Maxim Sakov is the Market Consultant – Russia Operations for Power Systems Research
