GM Uzbekistan to start production of M300 model in August
Tashkent, Uzbekistan (UzDaily.com) --
GM Uzbekistan, and Uzbek-US joint venture, will start production of M300 (Chevrolet Spark) model in August 2010, the UzAvtoSanoat said in a statement.
The company said Asaka-based plant completed installation of equipment and produced 11 samples of new model.
The launch of the serial production of M300 will allow to increase capacities of the plant by 50,000 units, attract new technologies and create new work places.
GM Uzbekistan and General Motors Daewoo Auto and Technology (South Korea) signed an agreement on supply of machinery and equipment for organization of production of Chevrolet M300 on 26 September 2008. The Government of Uzbekistan adopted a resolution on organization of production of this model at Asaka Plant in January 2009.
Total cost of the project is around US$124.455 million. GM Uzbekistan will produce 50,000 cars annually and part of which will be exported. The project will financed due to own resources of the venture’s founders and UzAvtoSanoat.
Uzavtosanoat and South Korea’s Daewoo Motor created a joint venture - UzDaewoo Auto - on parity conditions with the charter capital of US$200 million. In 1996, the venture launched car production plant with the cost of US$650 million in Asaka city of Andijan region. The capacity of the venture is 200,000 cars per year.
In May 2005, Uzavtosanoat purchased 50% shares of Daewoo Motor in UzDaewoo Auto for about US$110 million.
General Motors and Uzavtosanoat completed process of creation of GM Uzbekistan on the base of UzDaewooAuto in the end of March 2008. The charter capital of new venture is US$266.7 million.
General Motors owns 25% shares and plus one share in the new venture and it can increase its share up to 40%. Currently, Uzavtosanoat possesses 75% shares in GM Uzbekistan.
GM Uzbekistan increased car output by 5.1% year-on-year in 2009. In 2009, the company produced 205,011 vehicles.