AvtoVAZ and General Motors in talks to establish an enterprise for the production of engines

JSC "AvtoVAZ" and the American automobile concern General Motors in February and March 2005 to hold talks on establishing a joint venture to produce engines. In an interview with RBC, said the chairman of the board of directors of OJSC "AvtoVAZ" Vladimir Kadannikov. JV can be created in the coming months (previously announced that the new venture could be organized in late 2004). According to experts, AvtoVAZ talks with General Motors to establish joint venture for engine production is directly related to the intention of the Russian company to start production at a new base model car every 5 years. The problem of the new engine for AvtoVAZ is very acute. While the plant was costing the home. Since October 2004, AvtoVAZ was entirely on the equipment of cars of LADA 110 1.6 liter engines. To equip the cars LADA KALINA plant specialists also developed a 1.6-liter engine. But in order to go to the European rate of change of the model, a new line of engines for AvtoVAZ - a vital necessity.