The company intends to buy the General Motors facility that has been idle since 2015.
Hyundai has requested the RF Federal Anti-Monopoly Service for a permission to acquire the car manufacturing facility of General Motors. The plant that used to make low-budget Chevrolet and Opel cars has been idle since 2015, when the US corporation decided to close it down after the car market collapsed following the ruble devaluation.
Today, the Federal Anti-Monopoly Service said in a statement that Hyundai is interested in acquiring the conserved facility by buying 95% in the company that owns the plant. The news comes amid the decline in the Russian car market, with sales of new cars dropping by almost a quarter in the first half of the year. Experts believe the investment is part of a long-term strategy.
Ilya Ogorodnikov, Editor-in-Chief of the car magazine Dvizhok, comments: ‘The idea is to spend as little as possible to invest in a long-term prospect. The current car market downturn will be over sooner or later. Many less successful market players will have to leave, so Hyundai can snap their share.’
Hyundai has a car plant in St. Petersburg that manufactures some 200 thousand units a year. And, this July, the company inaugurated an engine building facility.
Photo: Hyundai Russia / vk.com
Video: St. Petersburg TV channel