27 Apr 2010 18:24

AvtoVAZ studying proposal from low-budget car maker

TOLYATTI. April 27 (Interfax) - Russia's largest automotive plant AvtoVAZ is studying a cooperation proposal from Mikhail Prokhorov's Onexim group and CJSC Yarovit Motors, which are working on creating a low-budget Russian city car, AvtoVAZ chief Igor Komarov told the press.

"We have for this project an inquiry concerning choice of premises and we are working on it," Komarov said. He did not say, however, on what kind of terms the creators of the low-budget auto want to get Russia's largest automotive plant AvtoVAZ production facilities. "All terms will be discussed further," he said.

Investment in the building of a plant in Tolyatti that will produce low-cost hybrid electric cars will run to EUR 150 million. Initial production capacity will be 10,000 vehicles annually. Plant construction is slated to begin next January, and serial production at the plant to begin in mid-2012.

The cars will cost $10,000 if 10,000 are built per year. A hybrid power plant for the vehicle is being developed with jointly Yarovit Motors.