Hyundai froze the project of reconstruction of the former GM plant in St. Petersburg

The Hyundai concern has suspended the reconstruction project of the former General Motors plant in St. Petersburg for an indefinite period. This spring it was planned to begin the reconstruction of the existing workshops of the enterprise, but these works did not start. The construction of new buildings, which was planned earlier, did not begin either. Recall that in November 2020, Hyundai closed the deal to acquire the General Motors plant in St. Petersburg. The production capacity of the plant in Shushary is 60,000 vehicles per year, and GM has invested $300 million in its construction.

Hyundai Motor Manufacturing Rus was reported to be using its new Shushary site to prepare components for shipment to Kazakhstan. Meanwhile, in December 2021, the interdepartmental commission on the SPIC approved the conclusion of an additional agreement. According to the document, by 2023, the company should localize the production of Hyundai Tucson, Hyundai Palisade and Kia Sportage crossovers at the facilities of the Shushary plant. It was planned to start the production in 2023, but now these dates will be obviously adjusted. Car market expert Denis Gavrilov suggests that in the current economic conditions, Hyundai may reconsider the concept of this investment project, refusing to produce expensive cars due to their lack of demand. In addition, Hyundai may have had plans to export, which is almost impossible today.

In his opinion, at the moment, Hyundai in Russia has a priority, probably, the main plant "Hyundai Motor Manufacturing Rus", where there are already hired personnel and social obligations to them. This facility in St. Petersburg produces Hyundai Solaris and Creta, Kia Rio and Rio X, however, due to a shortage of components due to a break in global supply chains, its conveyor has been idle since March 1st, and now it is necessary to try to find ways to resume the production.