General Motors is interested in the development of its joint venture with Russia’s largest car manufacturer AvtoVAZ, GM-AvtoVAZ, Carl Peter Forster, president of GM Europe, told a press conference.
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From GM’s point of view the joint venture is a success and brings good results, Forster said, according to Prime-Tass. “It would be a pity if we were not be able to continue our cooperation,” he added.
AvtoVAZ’ CEO Igor Yesipovsky said earlier in May that AvtoVAZ was also interested in cooperation with GM in the framework of their joint venture GM-AvtoVAZ. However, the venture has “lots of unsolved technical problems,” Yesipovsky said without elaborating.
Some earlier media reports said that AvtoVAZ’ new management sought to stop cooperation with GM.
After taking control over AvtoVAZ late last year, government-owned weapon exporter Rosoboronexport changed the automaker’s top management and AvtoVAZ halted supplies of assembly kits to the joint venture in an attempt to renegotiate the cooperation deal. As a result GM-AvtoVAZ suspended the production of Chevrolet Niva sport utility vehicles for several days.
AvtoVAZ also offered GM to either sell its stake in the joint venture or buy out AvtoVAZ’ stake, Russian business daily Vedomosti reported in April citing a source close to GM-AvtoVAZ.
AvtoVAZ and GM each hold a 41.5% stake in the JV, established in 2001, while the European Bank for Reconstruction and Development (EBRD) holds 17%.
GM-AvtoVAZ’ sales decreased 4% year on year to 51,806 cars in 2005, the company said in January.
GM-AvtoVAZ’ output fell to 51,810 cars in 2005 from 57,737 cars in 2004.
GM-AvtoVAZ currently producers Chevrolet Niva and Viva models, Prime-Tass said.
