BERLIN -- General Motors Europe will build high-volume Opels in Russia to help meet booming demand for Western cars in the country, GM Europe President Carl-Peter Forster said.
Led by Opel and Chevrolet, Forster said GM expects to sell 1 million cars in Russia and former Soviet Union republics such as Ukraine by early next decade.
"We will produce Astras in Russia for Russia because they are high-volume vehicles now." Forster told Automotive News Europe during an interview here.
Astra sales in Russia are up 216 percent to 21,984 through 10 months, according to the Association of European Businesses in the Russian Federation.
Forster added that GM wants to produce next-generation Opel Corsas, Zafiras and Vectras in Russia.
"We have been overwhelmed by Opel's success in Russia," Forster said.
Most Opel models sold in Russia are imported as complete vehicles so they face a 25 percent import duty.
To avoid the tax and meet strong demand, GM and its Russian partners are discussing where to build high-volume Opels. "We are flexible about where we produce what," Forster said.
Among GM's Russian production options for Opel are:
-- Expanding its new plant in St. Petersburg. In September, GM began building the Chevrolet Captiva and Opel Antara medium SUVs in a temporary kit-assembly plant in Shushary, near St. Petersburg. GM will open a new 70,000-unit-a-year factory in Shushary next year. "Shushary could be bigger," Forster said.
-- Boosting production at its joint venture plant with AvtoVAZ in Togliatti, Russia. Currently, the under-used plant builds a version of AvtoVAZ's Lada Niva small SUV and the Viva, which is based on a previous-generation Astra.
GM expects the total Russian market this year to reach 2.7 million units -- 1.8 million for foreign brands and 900,000 for locals -- up 50 percent from 2006.
Russia is now the fifth-biggest market for Opel in Europe. GM expects to sell 75,000 Opels in Russia this year and 90,000 to 100,000 next year.
In the first 10 months, Opel's Russian sales increased 164 percent to 50,929 units, according to the Association of European Businesses.
Through 10 months Chevrolet is the best-selling foreign brand in Russia with sales up 71 percent to 151,039 units.
Forster said he expects GM's 1 million future sales in Russia and the former Soviet republics to comprise about 800,000 Chevrolets, 150,000 Opels and 20,000 to 40,000 premium cars. GM's premium brands are Cadillac, Hummer and Saab.
"Almost all the sales will be below $12,000 to $13,000 [about €8,100 to €8.750]," he said. "That's where the sweet spot in this market is."
