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Uzbekistan 'taking over' GM Uzbekistan, holding talks with Volkswagen

Business Materials 1 June 2018 11:44 (UTC +04:00)
Uzbekistan 'taking over' GM Uzbekistan, holding talks with Volkswagen

Baku, Azerbaijan, June 1

By Fikret Dolukhanov – Trend:

The Uzbek automobile industry has taken a course on demonopolization, Uzbek mass media reported citing Chairman of the Board of Uzavtosanoat Umidjan Salimov as saying at a press conference in Tashkent.

He noted that while production was previously limited to the Chevrolet brand, one of the priorities now is multi-branding. At the moment, negotiations are under way with European manufacturers, including Volkswagen, as well as with Chinese and South Korean companies.

Salimov said that Uzavtosanoat in accordance with the government's decision is currently purchasing shares of GM Uzbekistan automobile plant in Asaka.

“General Motors currently retains 10 percent of plant’s shares. We continue to purchase shares in line with the schedule,” the head of the company said.

According to him, the plant is planned to be renamed after completion of this process.

“There will be a different name. We think what name we will give to this plant,” Salimov noted.

At the same time, negotiations are underway on the GM Powertrain Uzbekistan engine plant in Tashkent, in which GM has more than 70 percent of the shares. Agreements between the parties are almost achieved. Using the enterprise in future for production of alternative engines is discussed.

“The task of demonopolization of the automotive industry has been set by the country's president, so that Uzbekistan would have not only GM production, but also alternative automakers. And we will complete this task,” the head of Uzavtosanoat assured.

GM will remain on the market of Uzbekistan on the terms of technical assistance. In accordance with the agreements, Uzavtosanoat will be able to continue to produce GM models.

Salimov also noted that one of the priorities for the company is introduction of compliance, or anti-corruption policy.

“You see what happens in the trade, in the dealer centers. Changing the sales system is also one of the priorities of our policy, which consists of eight main points. We hope that in the next six-eight months we will fully implement all of them,” Salimov said.

In 2017, JV GM Uzbekistan produced 140,247 cars, which is 59 percent more than in 2016. Exports totaled 26,800 cars. In January-April 2018, production amounted to 53,219 vehicles, 4,526 of which (8.7 percent) were exported.

The Samarkand Automobile Plant produced 3,600 trucks and buses in 2017 (a 5.5-percent increase). The JV MAN Auto-Uzbekistan produced 1,200 trucks and buses in 2017.

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