TOGLIATTI, Samara region?? A?General Motors joint venture began building a?$200 million plant here on?Friday to?make components for?its Chevrolet Niva sports utility vehicle.
"This is a?historic event in?the journey the?joint venture has taken," Jim Bovenzi, president of?GM Russia, said at?a ceremony to?kick off the?construction.
The?50-50 venture, GM-AvtoVAZ, is now sourcing components from?the local partner, the?biggest Russian automaker .
But GM needs to?expand its local content in?Russia as part of?a deal with the?government. The?deal also reduced import duties on?knock-down kits that the?company uses to?assemble its vehicles in?the country.
The?Togliatti plant, whose construction is slated to?wrap up in?November 2015, will include an?auto-body making facility and?a metal press shop. It will make the?components for?a new generation of?Chevrolet Niva, which the?joint venture promises to?unveil at?the Moscow Auto Show next year.
"The current Niva has quite a?following?? almost a?cult following?? among customers," Bovenzi said. "The new Niva will be fantastic."
He said he was one of?the few people in?the company to?have seen the?design.
Described by?some as the?world's first crossover vehicle, the?original Niva first hit the?road in?1976. In?addition to?its heritage, it is comparatively affordable, selling for?$14,000.
The?capacity of?the new body shop will measure 120,000 units a?year.
GM-AvtoVAZ now can produce 98,000 Chevrolet Niva's at?most. The?venture will expand its assembly line output in?line with the?increased body shop potential.
"We will remove some roadblocks in?volumes," said Jeff Glover, GM-AvtoVAZ's outgoing general director.
The?venture sold 63,000 cars last year, up 9 percent from?the previous year, setting a?record.
Glover conceded the?overall market had been contracting lately, but expressed confidence that it would rebound.
"We would be negligent if we weren't investing in?a market like Russia," he said.
Sales of?cars and?light commercial vehicles took a?12-percent dip in?May, compared with the?same month last year. Analysts blamed the?drop, at?least partially, on?the longer May holidays this year.
Over the?first five months of?the year, the?decline constituted a?more modest 4 percent from?the same period last year.
Demand should recover in?the second part of?the year, brokerage firm Uralsib Capital said Thursday. It predicted that economic growth would accelerate.
Under the?deal with the?Russian government, GM looks to?build its local capacity to?350,000 vehicles a?year in?by 2016. Moving toward the?goal, the?company is also working to?increase its production potential at?its plant near St. Petersburg.
The?investment in?the press and?body shops in?Togliatti has another strategic value: The?move will provide more independence for?the joint venture from?an AvtoVAZ that comes under control of?the Renault-Nissan alliance later this year and?will need more car bodies for?itself. The?auto giant is looking to?increase capacity to?1.4 million vehicles by?2017 from?1.2 million units now, AvtoVAZ chief executive Igor Komarov said.
GM-AvtoVAZ chose a?special economic zone just outside the?city to?build the?new plant. The?area is almost a?complete greenfield at?the moment, with black water pipes snaking through open trenches. For?the ceremony, the?company rolled out green carpeting right over dirt.
The?zone has also drawn several producers of?auto components from?Japan, Germany, Slovenia and?Turkey, who committed to?make door hinges, exhaust pipes and?parts of?transmissions, among other things. Federal and?regional authorities are spending money to?provide utility and?other services to?future factories at?the site, in?addition to?tax rebates and?discounts on?customs duties.
Contact the?author at?medetsky@imedia.ru
winning numbers mega millions megamillions drawing olbermann mega millions march 30 lucky numbers odds of winning mega millions mary mary
No comments:
Post a Comment