General Motors (GM) has begun assembling semi-knocked down (SKD) kits of the Cadillac Escalade at its plant in St Petersburg, Russia, according to an Esmerk Russian News report. The model has previously been manufactured on a SKD basis at contract manufacturer Avtotor in Kalingrad. The report also stated that the GM-owned St Petersburg plant will begin assembly of Chevrolet Tahoe later this year.
Significance: Demand for the Escalade is relatively high for a luxury sport utility vehicle (SUV) with a high price point, although it is still significantly outsold in Russia by the BMW X5 , Mercedes-Benz M-Class and the Audi Q7. Production is expected to be in the region of 300–400 units per annum (upa) between now and the end of the decade. Peak production at GM's St Petersburg plant reached 86,000 units in 2012, although output has been hit by the macroeconomic downturn that led to the Russian passenger car market declining by 10% in 2014. Output fell to 67,000 in 2013 and almost halved to 37,000 units in 2014.
