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    As GM leaves Russia, Joint Venture with AvtoVaz Unaffected

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    According to Russia's automobile manufacturer AvtoVAZ, it's joint venture with General Motors keep intack despite GM Withdrawing from Russia.

    NIZHNY NOVGOROD (Sputnik) — US automaker General Motors' announcement to phase out its presence on the Russian market will not affect the operational plans of its joint venture with AvtoVAZ, the Russian company's press service said Wednesday.

    Earlier in the day, GM announced an amended business model in Russia, removing Opel completely and minimizing the presence of its Chevrolet brands. Additionally, the Detroit-based company said it will halt operations in its St. Petersburg plant by mid-2015.

    "Our plans remain unchanged," GM-AvtoVAZ's spokesperson told RIA Novosti.

    In its earlier statement, GM President Dan Ammann said the manufacturer's decision to cut down its low-cost product in Russia "avoids significant investment into a market that has very challenging long-term prospects."

    The joint venture is expected to continue manufacturing the Chevrolet Niva sport utility vehicle in its Nizhny Novgorod plant 400 kilometers (248.5 miles) east of Moscow. Last summer, the joint venture introduced the concept of the Chevrolet Niva's second generation, due to hit the assembly line in 2016.

    GM-AvtoVAZ was registered in 2001 between GM and Russia's AvtoVaz on an equal-ownership basis.

    As of late 2014, GM-AvtoVAZ sales of over 46,000 cars fell by 18.7 percent, and last year's production was cut back by one-fifth.

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    Tags:
    joint venture, General Motors (GM), AvtoVAZ, Russia
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