General Motors and UzAvtoSanoat of Uzbekistan have signed a series of agreements at GM Daewoo Auto & Technology (GM Daewoo) during a visit to Korea by the republic’s president Islam Karimov. Under the agreements, the Chevrolet Lacetti will be assembled in Uzbekistan this year from kits supplied by GM Daewoo. It will be the fourth Chevrolet built by UzAvtoSanoat, joining the Captiva, Epica and Tacuma.
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GM Daewoo will provide UzAvtoSanoat with technology and engineering support to enable it to become integrated into GM’s global manufacturing network.
GM is also granting UzAvtoSanoat the right to distribute Chevrolet brand products manufactured in Uzbekistan domestically as well as, via GM’s sales operations, in the Commonwealth of Independent States (CIS).
“The partnership between UzAvtoSanoat and General Motors will help drive the automotive industry of Uzbekistan towards new level of development,” said president Karimov.
“Our goal is to build a world-class industry that benefits the people of Uzbekistan by providing them a broad range of modern, attractive and affordable vehicles.”
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By GlobalDataThe agreements follow-up the announcement made by the partners last October that they would establish a joint venture in 2008.
The 250,000-unit manufacturing plant that will become the basis of the joint venture is situated in Asaka, Andijan province, 350km from the Uzbek capital, Tashkent.
“The production of a range of Chevrolet models in Uzbekistan is part of a broader push by GM across central and eastern Europe,” said GM Europe vice president of manufacturing Eric Stevens.
“Chevrolet cars and SUVs are now being built in Uzbekistan, Russia, Ukraine, Poland and Kazakhstan.”
According to GM, Chevrolet sales in the region rose from 140,000 units in 2005, when the brand was re-launched, to 288,000 units last year.
During Tuesday’s signing ceremony, which took place at GM Daewoo’s Bupyeong headquarters in Incheon, UzAvtoSanoat chairman U Rozukulov and GM Daewoo president and CEO Michael Grimaldi confirmed their agreement to the GM-Uzbekistan joint venture company charter, which is subject to the approval of the shareholders of the company when GM makes its investment in the near future.
GM will hold a 25% stake in the joint venture, with the option of increasing its share. GM will provide technology, manufacturing expertise and training for the 4,700-member workforce and the JV will have access to the entire Chevrolet range, GM’s largest and fastest-growing global brand.
Grimaldi said: “The new… joint venture will give GM additional manufacturing capacity required to keep up with the rapidly growing demand in central Asia and eastern Europe.”
With a population of 27 million, Uzbekistan has a vehicle market with significant potential for future expansion, according to GM.
The country’s economy has grown more than 7% over the past five years. Vehicle sales last year were around 70,500 units, up 7.5% year on year. In 2007, GM Daewoo exported to Uzbekistan more than 170,000 complete knockdown (CKD) and semi-knockdown (SKD) kits of parts and components for local assembly.
