Sochi, Sep 18: With an initial investment of 170 million euro, Auto giant, General Motors is gearing up to produce cheap cars in Russia, say reports.
Speaking on this, German Gref, the head of Sberbank, which together with Canadian Magna bought GM European Opel branch, said, "Production will be arranged in a brief time in St Petersburg. Most likely Opel Astra will be assembled."
"New Opel business plan has 170 million euro, which are investments in Russia that may be provided for production of components and for assembly", he said added.
Adding that the total investment could be lose to 600 million euro, Gref said that this is still a 'distant perspective' as "Opel's problem is that the company has to decrease costs and preserve investments into innovations. The project is very difficult and would be impossible without such partner as Magna."
Cooperation with crisis-hit AvtoVAZ carmaker in case it offers a similar cheap car is not ruled out, he said.