GAZ, Russian Machines and Nizhny Novgorod Government sign agreement to Develop Local Cluster

Between 2011 and 2015, the companies are planning to invest over RUB7 billion (€161 million) in the development of regional automotive cluster projects. The agreement provides for interaction between the regional government, Russian Machines and GAZ Group regarding a number of future investment projects in vehicle manufacture and automotive components production.

GAZ Group is currently implementing several strategic investment projects in Nizhny Novgorod Region in cooperation with international partners. The company will soon start contract assembly of Škoda Octavia, Škoda Yeti, Volkswagen Jetta and Chevrolet Aveo cars, as well as Mercedes-Benz Sprinter commercial vehicles at its Gorky Automobile Plant.

The company is also implementing automotive component projects to develop production of foreign-brand components at GAZ facilities both for the company’s own products and for other vehicle manufacturers. These include a JV with international manufacturer Bosal to produce exhaust systems and a JV with Swedish manufacturer of fasteners Bulten.