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GM in Joint Venture with Uzbekistan to Build and Sell Chevrolets
8 October 2007
General Motors has entered a joint venture with UzAvtosanoat to assemble and distribute Chevrolet cars in Uzbekistan, the central Asian republic. The joint venture, which will be called GM Uzbekistan, will extend Chevrolet’s rapid expansion in Eastern Europe and Asia.
With a population of 27 million (up 7 million in the past 15 years), Uzbekistan is an auto market with significant potential for further expansion. The country’s economy has grown by an average of 7% over the past five years. In 2006, vehicle sales reached a total of 65,600, 19% more than in the previous year.
GM will hold a 25% equity stake with the option of increasing this amount in the future.
The GM Uzbekistan manufacturing plant, situated in Asaka, Andijan Province, 350km from the Uzbek capital, Tashkent, has a total manufacturing capacity of 250,000 units which, over time, is to be fully utilized for producing Chevrolet cars. The first three Chevrolet models, Captiva, Epica and Tacuma, will be assembled from SKD kits starting immediately, with other carlines to be added for assembly from CKD kits and full-scale production over the next three years.
Until now, the Asaka assembly plant, which started production in 1996, has been building the Daewoo Matiz, Nexia and Damas for sale both in the domestic and neighboring markets. These models will be lined up along with Chevrolet models: Captiva, Epica and Tacuma during the interim period.
The new Chevrolet models will be sold initially at seven showrooms in Tashkent and other major Uzbek cities. By the end of 2008, the dealer network is expected to grow to more than 60 showrooms as the Chevrolet range for the Uzbek market is extended to additional carlines.
October 8, 2007 in Brief | Permalink | Comments (8) | TrackBack (0)
Comments
Posted by: Harvey D | October 08, 2007 at 09:01 AM
These Chevrolets will come with a *special* feature that will monitor the occupants and upon the uttering of the word "democracy" will rush them straight to the nearest prison for torture and execution.
Posted by: domenick | October 09, 2007 at 07:59 AM
domenick;
Did you know that Toyota (and very soon Honda) produce more vehicles abroad than in Japan?
This will also happen to GM, Ford, Mercedes, VW, Peugeot, Renault etc. The market is moving to China, India, Eastern Europe, Far East countries and so will (and even more so) factories. UAW members may not like it but that's what is coming sooner or latter. This trend will probably accellerate with BEVs whereas batteries, motors + control units can be built abroad at much lower cost.
One compromise may be to import most components + sub-assemblies and restrict the local factories to automated final assembly of imported sub-units.
Posted by: Harvey D | October 09, 2007 at 09:02 AM
Harvey D: I don't mind so much that GM is building cars outside of North America. I just don't like them building them in countries where the government is torturing and murdering it's citizens because of their desire for democracy. Where next? Burma?
Posted by: domenick | October 09, 2007 at 05:07 PM
Dirty Uzbeks!
Posted by: Borat | October 09, 2007 at 10:23 PM
"What's good for GM is good for Uzebkistan"
'
Posted by: gary | October 11, 2007 at 07:50 AM
I am Uzbek. Someone calls, "Dirty Uzbeks".
You frog, I would have kicked your ass if you told me face to face...
What a sock you are ???
Posted by: Sanjar | October 13, 2007 at 09:50 AM
Uzbeks are great nation. It is Uzbeks founded algebra and algorithm. You fools check out the wikipedia if u dont believe. Those arabic numbers originally come from Uzbekistan. Any muslim knows Samarkand and Bukhara, centers of Islam. Yet that's true that democracy is shortage. This country is very cosmopolitan and conservative, full democracy is too dangerous for now, all they need is full justice.
Posted by: vohob | September 08, 2008 at 08:07 PM
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GM's future could be mostly abroad. Producing cars economically, in USA/Canada, is getting to be an impossible task.
GE found the proper recipe a few decades ago.