GM to Build Small Cars in Belarus

General Motors Co. has signed an agreement for its Opel unit to assemble the Corsa compact hatchbacks in Minsk, Belarus, from 2014 through 2017.

The cars will be made by an existing Belarus-U.K. joint venture, Unison JSC, for sale locally and in Kazakhstan and Russia.

Unison will make about 7,000 three- and five-door Corsas from kits in the first year of production, according to GM. The U.S. company says it is considering adding production of unspecified Chevrolet models there.

The deal will enable Opel factories in Eisenach, Germany, and Zaragoza, Spain, to use some of their excess capacity to make components for the Minsk facility.