GM to assemble cars with Russia's GAZ: company

1st February 2011, Comments 0 comments

General Motors, the United States' biggest carmaker and long-time partner of Russia's top but ailing Avtovaz auto giant, said on Tuesday it had agreed to assemble cars together with Russia's GAZ.

The two companies agreed to assemble GM's Chevrolet Aveo car at the Russian carmaker's plant in Nizhny Novgorod in central Russia, the US carmaker said in a statement.

"This is our first project with GAZ," Sergei Lepnukhov, spokesman for GM Russia, told AFP.

"We were in talks for quite a long time," he said, adding that the two companies may produce other models in the future.

GM is a long-time partner of Russian state-controlled giant Avtovaz. Their joint venture makes the Chevrolet Niva sports utility vehicle.

Controlled by billionaire Oleg Deripaska, GAZ is most famous for its Soviet-era Volga sedan.

© 2011 AFP

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