Uzbekistan completes project on transfer of Damas cars production
Tashkent, Uzbekistan, August 7
By Demir Azizov- Trend:
"GM Uzbekistan" automobile plant plans to complete the second phase of the project on the organization of the "Damas" passenger car production on the base of Khorezm Automobile Production Union LLC in September 2014, "Uzavtoprom" JSC representative told Trend.
As reported earlier, the project on the organizing the "Damas" car production in the Khorezm region (southern Uzbekistan) worth $55.5 million was planned to be implemented in two phases.
The assembly production with the design capacity of 40,000 vehicles has been created within the first phase of the project which was completed in the first quarter of 2014.
The company will be transferred into full production cycle in the second phase.
The project is financed at the expense of Uzavtoprom JSC `s own funds combining the enterprises of the Uzbek automotive industry.
Prior to transfer of production, "Damas" cars were produced at the factory in Asaka city.
The freed automobile production area of GM Uzbekistan which is located in the Andijan region, will be used for the production of new models.
In 2010, Uzavtosanoat transferred the car Captiva and Malibu cars production on SDK technology from the Andijan region to some premises of the Tashkent Aviation Production Association named after V. P. Chkalov.
In 2013, the plant reduced production of "Damas" cars by 9.6 percent - to 22,232 units.
Uzavtoprom JSC and General Motors signed an agreement to create the GM Uzbekistan joint venture based on the previous UzDaewooAuto plant in October 2007. GM has a 25 percent stake plus one share in the company with an option to increase its stake to 40 percent. Some 75 percent of the shares belong to Uzavtoprom JSC.
Currently, GM Uzbekistan JV produces nine models of passenger cars. In 2013, "GM Uzbekistan" increased production by 4.5 percent up to 246,031 units compared to 2012.