Nizhny Novgorod regional governor, Valezy Shantsev, has welcomed the start of Chevrolet’s Aveo production this week at GAZ Group’s plant in the same city.

GM and GAZ Group inked the deal in 2011 to produce the Aveo in Russia, with the companies investing US$29m to ramp up the existing Nizhny Novgorod passenger car production facility.

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“We have been preparing a long time for this and what is important [is] that at GAZ, we are creating new jobs,” said Shantsev, at the ribbon cutting ceremony, which just-auto attended, in Nizhny Novgorod this week. “We are taking on the latest and highest productivity [as well as] top quality equipment.

“Today, in this very, very tough competition and global brands, the latest in automotive industry, we need to find our place and I am very happy the first plant in Europe doing full-cycle production of Chevrolet Aveo is starting in Nizhny Novgorod.”

The Aveo is being assembled on two shifts, with a hatchback version to be added to the GAZ production line at the end of next month. Planned annual output of both versions is 30,000 cars.

Aveo production in Nizhny Novgorod is final assembly from CKD (completely knocked down) kit, with GAZ carrying out welding, painting and assembly.

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It is using 43 welding robots and 33 welding jigs developed at GM Korea, while the paint shop was modernised and an assembly line developed and installed in the assembly shop specifically for the Aveo project.

The line includes a main conveyor; a line for the sub-assembly of the engine, doors, dashboard and suspension parts; and quality control stations. 

“For our region, the undertakings by GAZ are extremely important, simply because many people talk about investment and modernisation,” said Shantsev.

“Every month productivity creates new jobs and new remuneration – they are calculating their destiny – that is the objective for any government – any State.”

Some 700 new posts will be created with the start of Aveo production.