Engine plant GM-AvtoVAZ is not

General Motors Corp. gave up a joint venture with AvtoVAZ venture to produce engines and transmissions, the newspaper "Vedomosti", referring to sources in the Russian business circles. Plans to establish a joint venture there for over a year ago. The new plant was to supply engines for the production car GM-AvtoVAZ, which makes Chevrolet Niva, as well as for the pipeline itself AvtoVAZ. For the company planned to buy equipment for the production of engines with a German Opel plants and equipment for the production of transmissions from the Indian plant's bankrupt Daewoo Motor. The project is estimated at 400-500 million dollars. The original plan 70 percent of shares had to get AvtoVAZ, and the remaining 30 - GM and the EBRD. But against such a project at once made by some leaders of AvtoVAZ. According to them, engines produced at the new plant, would make the car VAZ per thousand dollars more expensive and thus would have knocked them out of your price range. Investing in joint ventures, AvtoVAZ would abandon development of its own - the cheaper engines. Now, against the joint venture already appears GM. As the managing director for Russia and CIS countries Warren Brown (Warren Brown) Americans did AvtoVAZ "his last and best offer" on the motor plant. Apparently this proposal is to make a new branch plant of AvtoVAZ, without participation in the American capital. According to the newspaper, GM will provide technology license, and pay for the equipment will be AvtoVAZ. According to analysts, the proposal benefits both partners. AvtoVAZ can now get big loans for small percentages and thus to find $ 400 million to build a new production. But GM does not want to invest in the Russian plant, because it is in a state of financial crisis and is trying in every possible way to cut costs.