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AVTOVAZ acquires the shares of General Motors in GM-AVTOVAZ joint venture

Dec 11, 2019

Avtovaz acquires the shares of General Motors in GM-Avtovaz joint venture, as reported by the press office of the company.

ChevroletNiva2-800x500_c

The companies have signed an agreement, proposing the purchase of 50% of the shares of the joint venture in Togliatti from the American company. The joint venture has become a 100% affiliate company of Avtovaz Group. The parties have not disclosed the financial details of the transaction.

The plant, which belongs to the joint venture, will continue with the production and sales of Niva automobiles under the brand name of Chevrolet for a certain period of time within the framework of the agreement, to be branded Lada in due course. No changes are planned for the future of the personnel in either of the companies. The current contracts with the suppliers and dealer centres of Niva will remain valid for the duration of the transition period. GM-Avtovaz will be renamed in the future, on the other hand.

“I am grateful to our partners from GM for a fruitful cooperation of over 18 years. Avtovaz will receive the second classic SUV in the range of automobiles, under the terms of the agreement. The Niva offer will organically complement the legendary 4×4 and support the further development of Avtovaz. Historically, the production process of the joint venture has been deeply connected with the main site of Avtovaz in Togliatti, which is an excellent starting point for further development in order to increase the level of customer satisfaction of our famous Niva. I warmly welcome the entire workforce of GM-Avtovaz, who are now a part of the Avtovaz Group” – said Yves Karakatzanis, the chairman and the general director of Avtovaz.

Source: rusautonews.com

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