GAZ Group bares expansion plans

Russian automaker GAZ Group said it plans to enter into a joint venture agreement with the Chinese truck maker First Automobile Works (FAW) in 2012. Kommersant Business Daily reported that the joint venture would be 50-50. FAW heavy trucks will be produced at GAZ Group’s facility in Chelyabinsk, located east of the Ural Mountains on Miass River, in Russia. GAZ Group President Bo Andersson said that the projected annual production would be up to 10,000 trucks. The production line in one of the company’s Ural plants will be modernized to pave the way for the production of FAW-branded trucks. In 2012, GAZ Group plans to begin assembling three Volkswagen models at its Nizhny Novgorod facility. Annual production is targeted at more than 100,000 vehicles, with an expected investment of €85 million (US$111.5 million). Additionally, GAZ Group hopes to assemble Chevrolet Aveo vehicles for general production. In 2013, the company wants to mass produce the GAZelle Next light commercial vehicles, as well as 25,000 Mercedes Sprinter vans for Daimler. (November 16, 2011)