GAZ, Chines FAW sign memorandum to assemble trucks in Russia
MOSCOW. Sept 27 (Interfax) - Russian GAZ Group and Chinese FAW have signed a memorandum of cooperation covering production of trucks at GAZ's Ural plant in Chelyabinsk region.
"Cooperation by the two companies involves creation of a joint venture at Ural facilities in Miass, Chelyabinsk region, to produce, sell and service trucks in Russia, with exports a possibility," GAZ said.
The trucks would use the YaMZ-650 line of diesel engines and the YaMZ-530 mid-sized diesel engines.
Under their cooperation agreement, GAZ will provide the production capacity at Ural and the network of dealerships and service centers, and FAW will provide the design, technology and its own service network in Russia. The sides plan to jointly modify the trucks for operations in Russian conditions. GAZ would also have the opportunity to promote its own products in China.
GAZ is the biggest Russian producer of commercial vehicles and road construction equipment. It make light commercial vehicles, buses and heavy trucks, road construction equipment, power trains and automotive components. The company's share of the Russian market in LCVs and all-wheel drive offroad trucks is in excess of 50%, buses - about 70% and diesel engines - 45%.
GAZ Group, headquartered in Nizhny Novgorod, has 18 production facilities in 10 Russian regions.
First Automobile Work (FAW), founded in 1953, has assets worth $14.27 billion. It sold 1.94 million vehicles last year. FAZ exports product to more than 70 countries. It has cooperation deals many major automotive manufactures including Audi AG, Volkswagen AG, GM, Toyota Motor Corporation and Mazda Motor Corporation.