Russian auto-maker GAZ is building a car manufacturing site in Odessa, according to Russian news media (8/11/00).

According to local media, the GAZ vehicles will be assembled at the plant, equipped with Peugeot engines. Russian automobiles Sobol and Gazel - again equipped with French engines - are also expected to be built at the site.

Output is set to reach 1000 units a year with the first vehicles set to go on sale in early 2001, say Russian media sources.

France's Peugeot-Citroen, Lada-export-Yug (Odessa) alongside KrymavtoGaz (Simferopol) and Spetsavto (Moscow) are the founders of the Odessa venture.