February 11, 2010

GM Signs MOU for Small Vehicle Production in Uzbekistan

Press Release

GM Uzbekistan MOU ceremony
© GM Co.

Seoul — Representatives from General Motors Company and UzAvtoSanoat of Uzbekistan signed a Memorandum of Understanding (MOU) today in Seoul for their GM-Uzbekistan joint venture to launch the production of a new small vehicle mainly destined for emerging markets.

The MOU was signed by GM Daewoo Vice President of Product Planning & Program Management Dwenell Mills and UzAvtoSanoat Vice Chairman Shukhrat Yusupov in the presence of GM Daewoo President and CEO Mike Arcamone and Republic of Uzbekistan First Deputy Prime Minister Rustam Azimov.

Today's agreement will enable GM-Uzbekistan, a joint venture between GM and UzAvtoSanoat in Asaka, Uzbekistan, to manufacture and sell Chevrolet's new lineup of small vehicles developed for rapidly growing emerging markets. GM-Uzbekistan already manufactures and markets models such as the Chevrolet Matiz, Lacetti and Captiva.

The MOU will also enable GM Daewoo to expand the presence of Chevrolet in Uzbekistan, the Commonwealth of Independent States (CIS) and Russia.

GM Daewoo in Korea expects to achieve considerable growth in revenue by providing essential engineering technology and equipment necessary for the new vehicle program. By supplying CKD (Complete Knock-Down) kits of parts and components, it will contribute to the growth of the Korean automotive supply base as well.

“The excellent products being produced and exported by UzAvtoSanoat and GM's joint venture are contributing greatly to the growth of Uzbekistan's automotive industry and economic development,” said Azimov. “I hope Uzbekistan's automotive industry will reach global standards in the near future with the help and support of General Motors and agreements like this one.”

“Uzbekistan, where we recently began construction of a new powertrain facility, is Chevrolet's core production base in the high-potential markets of Central Asia and Eastern Europe and a significant strategic partner for our export business,” Arcamone said. “We will continue to support our Uzbekistan operations through the introduction of new products and the means to build them.”

GM-Uzbekistan was established in March 2008. GM has a 25 percent stake while UzAvtoSanoat holds the remaining 75 percent. The joint venture has an annual production capacity of 250,000 units. Its vehicles are sold in Uzbekistan via GM's sales operations and exported to the CIS and Russia. In 2009, GM Daewoo exported 199,000 CKD kits and 1,800 vehicles to GM-Uzbekistan.

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