Russian vehicle maker GAZ plans to invest hundreds of millions of dollars in building new engines for its light and heavy commercial vehicles, executives said.
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GAZ will decide within two months whether to invest $US100m to $300m equipping its Gazelle vans with new diesel engines, either by building them under licence or by expanding its production capacity, Reuters reported.
The company, controlled by metals tycoon Oleg Deripaska, also plans to make a truck engine it has designed jointly with Austrian firm AVL which meets Europe’s Euro-4 emissions rules.
“From here to production is a road that is two years long and costs EUR150m ($189m),” Igor Kulgan, head of GAZ’s engine division, told Reuters at AVL headquarters in Graz.
Executives said GAZ hoped to ramp production of the new truck engine up to 50,000 units per year by 2010, and to 100,000 units by 2012, and that the project should cover its costs within five to seven years.
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