GAZ Group, Russia’s largest producer of commercial vehicles and road construction vehicles, plans to start assembling Volkswagen’s Skoda vehicles at its main plant in the Nizhny Novgorod Region on 1 November, CEO Bo Andersson said.

GAZ plans to assemble around 500 Skoda Yeti cars in 2011, Anderson told Prime News, adding that full-scale assembly was to start in September 2012. Besides the Yeti, GAZ is to produce the Octavia, as well as the Volkswagen Jetta by 2013.

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GAZ Group and Volkswagen, which has an assembly plant of its own in Kaluga, signed a EUR200m agreement on the production in June. The capacity is expected to eventually reach 110,000 cars per year.

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