But there appeared to be some confusion about whether the automaker had signed a formal agreement to do so.
Russian Economy Minister German Gref told Russian President Vladimir Putin that GM had signed a deal to invest $200 million in a new car factory outside St. Petersburg, according to an
news agency report summarized by
. The factory will produce three car models.
Earlier Monday, the
reported that Gref¿s ministry had announced GM¿s plans for a new factory and said GM Vice President Carl-Peter Forster would sign a deal at an evening ceremony, but that the ceremony was later canceled.
A GM spokesman confirmed Monday that Forster would be in Moscow but denied that any final deal had been reached, the
GM is no stranger to car manufacturing in Russia. It launched a $340 million joint venture with AvtoVaz 5 years ago, but that project has run into problems in recent months because of a parts dispute.
Also Monday, German automaker
signed an agreement to build a nearly $510 million car plant in the Russian city of Kaluga.
GM shares finished Friday at $28.08.