GM has confirmed today that it has bid for a ‘significant’ stake in AvtoVAZ.
“We have made a bid we consider to be appropriate,” GM spokesman Marc Kempe told Reuters.
Kempe, who declined to specify the size of the bid or the offer, said GM was interested in exploring further cooperation with AvtoVaz as one way to ‘expand our footprint in Russia.’
GM already has a joint venture with AvtoVAZ producing the Chevrolet Niva SUV and Chevrolet Viva sedans. It is also building a Greenfield plant in St. Petersburg, and Chevrolet vehicles are assembled from kits in Kaliningrad.
In September, Sergei Chemezov, the head of Rosoboronexport, which controls AvtoVAZ, said that the company may sell a 25% stake to outside investors. GM faces competition for a stake from other foreign vehicle makers, including Fiat and Renault.
GM is hoping to sell a million GM cars in Russia by 2010.