GM Uzbekistan, GM’s joint venture Uzbek automaker Uzavtoprom, plans to launch serial production of a new city car model for the 2011 model year.

GM Uzbekistan will start producing the M300 car model (Chevy Matiz related), an Uzavtoprom official told the Prime-Tass news agency.

Investments in the project are planned at US$124.5m. The project will be financed by borrowed funds as well as Uzavtoprom’s own funds, it was reported.

Construction of a new assembly line at the plant is expected to start sometime in January-June of this year.

The plant is expected to annually produce 50,000 units of the new car model, including 20,000 units slated for exports.

GM Uzbekistan was set up last year. GM holds 25% plus one share in the joint venture and has an option to increase its stake in the company to 40%. Uzavtoprom holds the remaining 75%.