Interfax reports that Gorky Automotive Works (GAZ) plans to begin the assembly of engines from Iveco at its own facilities this year.

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Initial plans call for shipping GAZ Iveco engines for use in the ‘Gazel’ and ‘Sobol’ model vehicles. Expectations are that Iveco will deliver 5,000 diesels before year-end. It is planned that Iveco diesel engine production at GAZ will be as high as 50,000 units a year by 2006.

GAZ’s holding company, Ruspromavto, is currently negotiating engine shipments with Iveco in Turin, according to Interfax.

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