Interfax reports that Gorky Automotive Works (GAZ) plans to begin the assembly of engines from Iveco at its own facilities this year.

Initial plans call for shipping GAZ Iveco engines for use in the ‘Gazel‘ and ‘Sobol‘ model vehicles. Expectations are that Iveco will deliver 5,000 diesels before year-end. It is planned that Iveco diesel engine production at GAZ will be as high as 50,000 units a year by 2006.

GAZ’s holding company, Ruspromavto, is currently negotiating engine shipments with Iveco in Turin, according to Interfax.