Friday, 23 May 2008 10:52

The World's Hottest Auto Market: As Russian demand explodes, foreign automakers cash in

"The market has grown at a much faster clip than we thought," said GM President Frederick Henderson. "We're seeing all of our global competition running hard in Russia."

All around St. Petersburg, the world's major automakers are putting up factories. Hyundai Motor Co. will start building a plant next month, Nissan Motor Co. expects to open a $200 million factory next year, and Ford is expanding its $230 million plant for the third time in six years.

Fueled by a surge in oil prices, Russia has turned into the hottest of the hot emerging markets -- countries where automakers that can supply the right models earn a lot of money, particularly in the early stages of the boom when demand is outstripping supply.

full story Detroit News

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