Hyundai May Shift Production From Kaliningrad To Ex-GM Plant In St. Petersburg - Reports

MOSCOW (UrduPoint News / Sputnik - 28th July, 2020) Hyundai may shift production of certain car models from the Avtotor plant in Kaliningrad to a closed General Motors (GM) factory in St. Petersburg should its plans to purchase the facility succeed, Russia's Kommersant newspaper reported on Tuesday, citing sources.

Earlier in the week, Russia's Federal Antimonopoly Service said that it has received Hyundai Motor Manufacturing Rus' request to purchase the GM plant. Hyundai confirmed to Sputnik that it is in talks with GM.

According to the Russian newspaper, Hyundai is likely to relocate production of several car models to the GM factory. The transfer will not affect the premium models of Genesis, for which it is not economically feasible to increase localization, as well as Hyundai Sonata, as agreements have already been reached to build a welding line for it.

Hyundai is said to be interested in the deal to use the existing welding and painting facilities of the GM plant, instead of building them at Avtotor as part of its obligations to deepen localization.

The GM plant in St. Petersburg was opened in 2008, with investment in the project totaling about $300 million. However, in the spring of 2015, the US car manufacturer decided to stop production and mothballed the assembly site.