Uzbekistan likely to start production of Chevrolet Spark in 2010

Business Materials 15 February 2010 15:23 (UTC +04:00)

Uzbekistan, Tashkent, Feb. 15 / Trend D.Azizov /

Uzbekistan intends to begin production of a new Chevrolet Spark car together with GM Uzbekistan in 2010, a source in the government said.

Earlier, Leadership of General Motors Daewoo and Technology (GM DAT) and AK Uzavtoprom signed a memorandum of understanding on the organization of production. The memorandum was signed during Uzbek President Islam Karimov's visit to Korea.

Based on the document, GM Uzbekistan will be the exclusive manufacturer and seller on the CIS market. Chevrolet Spark production is expected to start late August 2010 and export in September.

In late 2008, GM Uzbekistan and GM DAT signed an agreement to launch production of a new A-class model worth $124.5 million. Project production capacity is 50,000 cars per year, 20,000 of which will be exported.

The project will be financed through credit founders of the joint venture and equity AK Uzavtoprom.

The interviewee said that the sides also reached an agreement to develop a new business-class sedan, GSVEM, by late 2011.

Production of two new models is part of the business plan signed by the government of Uzbekistan and GM DAT in May 2007.

GM Uzbekistan started 2008 the production of a modernized Nexia model and a series production of the Lacetti model, which was build on a previously conducted large-scheme. Total investment in these projects was $65.5 million.

AO UzDaewooAuto was created on a parity basis by the Uzbek government and South Korean Daewoo Motors. In May 2005, Uzavtosanoat purchased 50 percent of Daewoo Motors shares for about $110 million. GM owns 25 percent of the shares and has one share in the new venture.

Currently, GM Uzbekistan produces six types of cars, including two models of Chevrolet - Captiva and Epica.

GM Uzbekistan, a joint venture of GM and Uzavtosanoat, increased car production by 5.1 percent to 205,011 units in 2009.

In 2009, the venture produced 90,650 Nexia cars (down by 4.6 percent), 69,130 Matiz compact cars (down by 1.4 percent), 1, 098 Epica (down by 46.7 percent), 1,100 Captica (down by 41.9 percent) and 23,633 Damas minivans (down by 3.6 percent). The company produced 19,400 Lacetti cars in the reporting period (up 14 times).

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