AVTOVAZ acquires GM’s stake in the GM-AVTOVAZ Joint Venture
AVTOVAZ signed an agreement with General Motors to buy-off 50% share of the Togliatti-based JV GM-AVTOVAZ from the American Company and the JV will become a 100% affiliate to AVTOVAZ G. The parties are not disclosing financial details of the deal.
Under the agreement, the former JV plant will continue producing and selling NIVA vehicles under the Chevrolet brand for a certain time period, and later the car is planned to be re-badged to LADA. No change for employees of both companies is planned. Existing contracts with suppliers and the NIVA dealerships remain unchanged for the transition period. Ultimately CJSC GM-AVTOVAZ company will be renamed too.
“I’m thankful to our GM partners for over 18 years of fruitful cooperation. Within the agreement AVTOVAZ is getting the second off-roader in the product range, that will organically supplement the legendary 4x4 and support AVTOVAZ future development. Historically, the JV production processes are deeply connected with AVTOVAZ main plant in Togliatti, which is a very good starting point for future developments to satisfy our customers of the famous NIVA. I would like to wish a very warm welcome to all employees from GM-AV into AVTOVAZ Group,” – said Yves Caracatzanis, AVTOVAZ President and CEO.