Avtovaz has signed an agreement with General Motors to buy out its 50% share of the Togliatti-based GM-Avtovaz joint venture.
The JV will become a 100% affiliate to Avtovaz, while the parties are not disclosing financial details of the deal.
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Through the agreement, the former JV plant will continue producing and selling Niva vehicles using the Chevrolet brand for a certain time, with the car subsequently planned to be re-badged to Lada. No change for employees of both companies is planned.
Existing contracts with suppliers and Niva dealerships remain unchanged for the transition period. Ultimately GM-Avtovaz will be renamed.
“I’m thankful to our GM partners for over 18 years of fruitful cooperation,” said Avtovaz president and CEO, Yves Caracatzanis. “Within the agreement Avtovaz is getting the second off-roader in the product range, that will organically supplement the 4×4 and support future development.
“Historically, the JV production processes are deeply connected with Avtovaz main plant in Togliatti, which is a very good starting point for future developments to satisfy our customers of the Niva.”
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