GAZ and AvtoVAZ are considering the acquisition of Tritec Motors, the Brazil-based engine joint venture owned by DaimlerChrysler and BMW that supplies petrol engines for the Mini.
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Prime-Tass news agency has reported that preliminary talks have already taken place and that official talks will begin in early April.
China’s Lifan Group has also been reported as a possible purchaser of the plant. It would shift the plant to China.
GAZ and AvtoVAZ have confirmed publicly that they are interested in acquiring an overseas engine manufacturer but have not confirmed any specific targets.
The joint venture curently produces the 1.6-litre, 16-valve Tritec engine used in the Mini but this engine will be replaced by an in-house design made at Hams Hall in Birmigham, UK, when the car is redesigned in a year or two.
AvtoVAZ was in talks with Tritec last year on the purchase of engines, according to Prime-Tass, but could not agree on a price.
AvtoVAZ is also considering buying a gearbox producer in the UK.
