Plans also call for local production of engines, transmissions, axles, and other components, which will then be used in the Mercedes-Benz Sprinter and in the GAZ product portfolio.

Pending positive findings of a technical feasibility study, Mercedes-Benz Vans and GAZ will begin preparing the Nizhny Novgorod production location in 2011 for the joint production of vehicles and components. This will involve modification of the existing light commercial vehicles production facilities at the site, bringing new facilities to Russia, and training GAZ employees for their new tasks.

After production is launched, it is expected that about 25,000 units of the Sprinter will roll off the assembly line in Russia in a typical year. Daimler will organize sales and servicing of the vehicles through the existing Mercedes-Benz dealership network, with support of the selected GAZ dealerships.

At the official presentation of the project, Dieter Zetsche, Daimler CEO and Head of Mercedes-Benz Cars, said alongside Russian Prime Minister Vladimir Putin, “Russia is an attractive place to invest with great opportunities for growth, and that’s why Daimler has made a long-term commitment to it. The partnership with GAZ underscores once again the fact that Daimler has come to stay and to achieve further growth.”

Gorky Automobile Plant (GAZ) is Russia’s largest producer of commercial vehicles of 2.8t to 8.2t GVW. GAZ’ share of the Russian commercial vehicles market exceeds 50%. GAZ brand distribution and service network is the largest in Russia in terms of sales and commercial vehicles servicing. It comprises 260 dealerships, as well as 240 service stations in Russia and the CIS. Gorky Automobile Plant is the main production asset of GAZ Group.

GAZ Group is one of the largest automotive holdings in the country. The company comprises 18 production plants in ten regions of Russia. GAZ Group produces light commercial vehicles, heavy trucks, buses, cars, road construction equipment, powertrain and auto components.