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February 2, 2011

RUSSIA: Chevrolet looks to up localisation with new Aveo

Chevrolet Russia says it aims to increase localisation of parts in the country as it starts to build the next-generation Aveo vehicle in co-operation with GAZ Group.

Chevrolet Russia says it aims to increase localisation of parts in the country as it starts to build the next-generation Aveo vehicle in cooperation with GAZ Group.

At present, Chevrolet Aveos are assembled in Kalingrad but a new deal will see the next generation Aveo assembled under contract at GAZ’s facility in Nizhniy Novgorod some 700km east of Moscow.

“We can’t say we will completely produce in Russia, but the aim is to increase localisation and have more and more details produced [here],” a Chevrolet Russia spokeswoman told just-auto from Moscow.

“The contract assembly is the first project of GM and GAZ Group.”

Chevrolet Russia said it sold 22,000 Aveos last year and expects to sell around 30,000 locally assembled sedans and hatchbacks each year.

Production is scheduled to start in the middle of next year and although the price has not yet been released, it is not thought the new-generation model will be cheaper.

“Now the price is RUB388,000 (US$13,170) for the car – I don’t think it [new Aveo] will be cheaper as it is new generation,” said the Chevrolet spokeswoman.

Nizhniy Novgorod is the site of GAZ Group’s factory, with Chevrolet Russia noting: “This is extra work and there is the chance of greater employment.

“It [GAZ] has the line we can use and it could be modified – it is flexible.”

GM Russia and CIS managing director Jim Bovenzi said the deal would lever GAZ’s resources and address demand for vehicles in the subcompact class.

The new Aveo hatchback made its debut at the 2010 Paris motor show and was followed by the sedan which was introduced last month in Detroit.

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