Russia's largest car manufacturer AvtoVAZ and the U.S.' General Motors Corporation (GM), the world's largest automobile manufacturer, are considering the establishment of a joint venture for engine production, Vladimir Guba, general designer at AvtoVAZ, told reporters Thursday.

Guba said that the joint venture would be based in Tolyatti, in the Samara Region, and produce 1600 and 1800 cc engines, reported PRIME-TASS.

AvtoVAZ and General Motors already operate a joint venture GM-AvtoVAZ in Tolyatti, which produces Chevrolet-Niva sport utility vehicles. It was established in 2002.

GM, the world's largest automobile manufacturer, and AvtoVAZ each have a 41.5% stake in GM-AvtoVAZ, while the European Bank owns the remaining 17% stake for Reconstruction and Development (EBRD).

In 2004, GM-AvtoVAZ plans to make about 60,000 Chevrolet-Niva SUVs.