GAZ Group to launch full cycle production of Skoda Yeti cars in Nov
NIZHNY NOVGOROD. Feb 17 (Interfax) - Full cycle production of Skoda Yeti cars should start in November 2012 at the GAZ Group's Gorky Plant, the group's president, Bo Andersson, told journalists during the opening of the Volkswagen Group Rus Scientific Center.
He said that the plant will move from semi-knockdown production (SKD) to complete knockdown production (CKB) in November. "Welding, painting and final assembly will be done at our facility," Andersson said.
The Governor of the Nizhny Novgorod Region Valery Shantsev said during the opening ceremony that GAZ Group's local production facility is now actively getting ready for production of three models: Skoda Octavia, Skoda Yeti and Volkswagen Jetta. The governor added that the plant's foreign partners have still not ruled out the option of producing a fourth model. "A new car is being especially developed for the residents of the Nizhny Novgorod Region. But this is still a secret," Shantsev said.
It was earlier reported that semi-knockdown assembly of the Skoda Yeti started at the Gorky plant on November 4, 2011. This is the first stage of GAZ Group and Volkswagen Group Rus' implementation of a long-term agreement for producing Volkswagen and Skoda vehicles at the GAZ plant in Nizhny Novgorod.
The agreement is in effect for eight years but both sides have not ruled out continuing their partnership after this period has expired.
In accordance with the agreement, full cycle (CKD) production of Skoda Octavia cars (around 50,000 units a year), and Skoda Yeti (around 20,000 units a year) would be organized, as well as the new Volkswagen Jetta (40,000 cars a year). Therefore, total production will top 100,000 units a year.
Andersson earlier told journalists that 500 Skoda cars could be produced in Nizhny Novgorod by the end of 2011.
Investment in production of the three models will come to 200 million euro, 85 million euro of which GAZ will invest. The investment will be earmarked for such efforts as modernizing GAZ's capacity for producing cars and new equipment, which would meet the specifications for production.
After the facility in Nizhny Novgorod reaches design capacity the company will continue to produce VW Polo sedans in Kaluga and Skoda Octavia cars until 2013, as well as one more Czech car model.
GAZ plans to produce 1,000 vehicles a day by 2015, 540 of which will be contract assemblies.
GAZ Group has also reached agreements for assembling light commercial vehicles in Nizhny Novgorod with Daimler, as well as for car production, with General Motors.