Uzbekistan, Tashkent, Jan. 21 / Trend D.Azizov /
GM Uzbekistan will start a production development project in 2011 to manufacture the new business-class Sedan model worth $136.2 million, a source in government circles told Trend today.
The project is included in the republican investment program for 2011.
Currently the feasibility study of the project is under development. Work to build a new assembly line car with a working title GS-VEM is scheduled to begin in the second half of 2011.
According to preliminary data, the new production's design capacity will be 100,000 cars per year.
In parallel, GM Uzbekistan will start a project on modernization of existing enterprises to localize manufacture of the component parts of a new model sedan. Preliminary project cost is $70 millionl; the implementation period - 2011-2012.
The projects are expected to be funded through GM Uzbekistan, and enterprises engaged in the production of components for the Uzbek automobile industry.
Production of the new sedan is part of an agreement on strategic cooperation between the Uzbek government and GM DAT, signed in May 2007. The agreement provides for further development of car production in Uzbekistan and integration of the automobile plant in the global system GM.
In August last year, GM Uzbekistan began commercial production of car class "A" - Chevrolet Spark. The design capacity of the production, worth $124.5 million, is 50,000 cars per year, including about 20,000 cars to be exported.
Uzavtosanoat and South Korea's Daewoo Motor created a joint venture - UzDaewoo Auto - on parity conditions with the charter capital of $200 million. In 1996, the venture launched the car production plant with the cost of US$650 million in Asaka city of Andijan region. The capacity of the venture is 200,000 cars per year.
In May 2005, Uzavtosanoat purchased 50 percent shares of Daewoo Motor in UzDaewoo Auto for about US$110 million. General Motors and Uzavtosanoat completed the process of creation of GM Uzbekistan on the base of UzDaewooAuto in the end of March 2008. The charter capital of the new venture is $266.7 million.
General Motors owns 25 percent shares, plus one share in the new venture. and it can increase its share up to 40 percent. Currently, Uzavtosanoat possesses 75 percent shares in GM Uzbekistan.
Currently, GM Uzbekistan produces seven models of cars, including two models of Chevrolet - Captiva and Epica.
In 2010, GM Uzbekistan increased its car production by 6.2 percent - up to 217.733. In 2009, GM Uzbekistan increased its car production by 5.1 percent compared to 2008.