Cyrillic Partners

Less than a week after VW announced it would open a production plant outside of Moscow (see story), GM has decided to join the Russian automarket, offering a bid to buy a slice of AutoVaz.

AutoVaz’s parent company, state arms exporter Rosoboronexport, was looking to offload a piece of the car maker just as GM was looking to expand into new markets. The U.S. automaker has seen its margins decline as people move away from highly-profitable SUVs and toward less-profitable cars.

GM sees Russia as an opportunity for growth. The two companies had a joint venture to produce the Chevrolet Niva sport-utility vehicle and the Chevrolet Viva sedan.

[Reuters has the story]

Trackback URI | Comments RSS