General Motors and UzAvtoSanoat have established a joint venture in Uzbekistan.
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UzAvtoSanoat holds the majority stake in the new joint venture called General Motors Uzbekistan with GM holding 25% plus one share, with the option of increasing that share in the future.
“As a key element of our growth strategy, GM has moved aggressively in recent years to establish a leadership position in the world’s fastest growing markets,” said GM chairman and CEO Rick Wagoner.
“The joint venture will also support GM and Chevrolet’s continued growth in Central and Eastern Europe.”
The new JV will build Chevrolet cars and SUVs for distribution through a network of 60 dealers.
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By GlobalDataThree GM-Daewoo-designed Chevrolet models, the Captiva, Epica and Tacuma, are already being assembled at the joint venture’s plant in Asaka, Andijan province, 350 km from the capital. The Lacetti will join the line-up later this year.
Other Chevrolet models will follow over the next few years, utilising the plant’s annual capacity of 250,000.
Some will be exported to neighbouring CIS markets.
General Motors provides technology, manufacturing processes and training for the joint venture’s 4,700-member workforce.
As the plant includes more new vehicles in its production line-up, the joint venture will try to attract parts and component manufacturers to support the growth of the regional automotive industry.
With a population of 27 million, Uzbekistan has a vehicle market with significant potential for future expansion, according to GM.
In 2007, vehicle sales were about 70,500 units, up 7.5% year on year.
In 2007, GM Daewoo exported about 170,000 complete knockdown kits (CKD) and semi-knockdown vehicles (SKD) to Uzbekistan for local assembly.
