General Motors has announced that it has contracted Russian automotive manufacturer GAZ Group to assemble the next-generation Chevrolet Aveo for the Russian market.
Assembly will commence at GAZ’s Nizhniy Novgorod (the fourth largest Russian city) facility in mid-2012, with plans to manufacture approximately 30,000 Aveo sedan and hatchbacks annually. According to GM’s press release, the Russian-built Aveo will only be sold in the Russian market and not be earmarked for export.
The announcement could be the result of the Russian government providing favorable incentives for large automotive players such as General Motors to increase production of vehicles in the country.
GAZ, or Gorky Automotive Plant, is Russia’s largest producer of commercial vehicles of 2.8 to 8.2 GVW, with a market share share over 50 percent.