GM Uzbekistan to implement program on exchange and utilization of cars in Russia
Uzbekistan, Tashkent, April 6 / Trend D. Azizov /
GM Uzbekistan JV (earlier UzDaewooAuto, Andijan region of Uzbekistan) launched a special program for the exchange and utilization of vehicles in Russia from April, the company said.
Official dealers of the company will accept used cars in exchange for new Matiz and Nexia within the program. Any brand is accepted for exchange.
Dealerships will assess used Matiz and Nexia cars not less than 90 percent of the average market value for similar vehicles, adjusted for the region.
Until the end of April, the draft will operate in test mode. According to preliminary calculations, the project could be a long-term.
In 2010, GM Uzbekistan plans to sell 55,000 cars in Russia or eight percent more than in 2009.
General Motors Daewoo and Technology (GM DAT) and Uzavtoprom signed a memorandum of understanding on the organization of the production of compact car Chevrolet Spark in the joint venture of GM Uzbekistan in February this year.
According to the document, GM Uzbekistan will be the exclusive manufacturer of a new model for the CIS market, as well as implement sales on the CIS markets. It is expected that the production of Chevrolet Spark will be launched in late August this year. Cars will be exported in September.
GM Uzbekistan and GM DAT concluded the contract in late 2008 to produce a new model of class "A" worth $124.5 million in Uzbekistan. Its designed capacity is 50,000 cars per year, 20,000 cars to be exported.
Project will be financed through credit resources of founders of joint venture and Uzavtoprom's funds.
GM Uzbekistan JV was established on the base of UzDaewooAuto with authorized capital of $266.7 million.
UzDaewooAuto was created on a parity basis by the Uzbek government and South Korean Daewoo Motor. In May 2005, Uzavtosanoat purchased 50 percent of Daewoo Motor 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.