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GM Starting to Produce at Russian Plant

General Motors has announced that they will be building 30,000 cars at the Russian plant that belongs to the group GAZ'S GAZ RTS. GM has said that this is a way for both companies to expand their business by making a dominant presence in the area.

GM has said that they plan to start producing a car that is much similar to the Aveo here in the United States at the plant. There hopes is that they start to dominate the Russian economy in order to gain more popularity over the other auto manufacturers in the area. Thus, improving the sales that they experience in Russia. A dream that many other automakers share with GM.

Earlier it was reported that Volkswagen was also in talks with the Russian company to start up a partnership. So many are wondering if GM has beat out Volkswagen? The Russian company has confirmed that they are still in talks with Volkswagen and that the coupling of the company with GM did not mean that they could not further their business by working with other car makers as well. So this could mean that VW and GM will be right side by side in a tight competition. 

Will this coupling of GM and the Russian company prove to benefit the auto maker? At this point, GM is trying to prove that they are indeed back on their own two feet after having to be bailed out by the government. This is a great way to prove this, however, it has not been a decision that GM has taken lightly. They have thought this situation out and came to the best conclusion that they could in order to make sure that the finances of the company were not put into jeopardy. Business between the US automakers and Russia has really only opened up in the past few years, so only time will tell if the decision being made was correct or not.