AvtoVAZ will bring a used factory from India for itself

In November, General Motors and AvtoVAZ plan to announce the construction of a plant for the production of engines and transmissions in Togliatti, Vedomosti say. Moreover, it became known what equipment would stand at the factory. It turns out that it is planned to equip it with machines belonging to the bankrupt Daewoo Motors India.

Recall that back in May of this year, GM-Autsovaz CEO John Milonas did not rule out that in the future, an OPEL plant could be built in Togliatti, which, however, can be installed on Russian cars. According to Milonas, these will be "the largest investments of foreign capital in the Russian auto industry for all the time." Experts estimate the project at $ 400-500 million.

According to the newspaper, the plant will begin to work in 2007 if there are no traditional delays and difficulties. One of the leaders of the Togliatti city hall, on anonymity, said that a plot of land adjacent to the GM Autocrust has already been determined for the new plant, and now documents are drawn up for its allocation.

Representatives of AvtoVAZ, GM and the European Bank for Reconstruction and Development, which, as expected, will also take part in the project, refuse to officially comment on the new project.

The new enterprise will produce a power unit, which includes an engine, a gearbox and a transmission, AvtoVAZ manager told the newspaper. According to him, the enterprise will be equipped with equipment transported from one of the idle auto -plants in India. We are talking about a factory that previously belonged to the Korean Daewoo Motors. Just now, Daewoo Motors India creditors sell the ETA plant, built in the last decade and capable of producing 300 thousand engines and transmission per year. The plant was closed in September 2001, and GM is considered the main contender for this asset.

It is assumed that the plant engines will be installed on Chevrolet-Viva, the export version of Chevrolet-Niva, as well as to promising models of AvtoVAZ. The 16-valve engine Opel FAM-1 has a volume of 1.8 liters, power-122 hp.

Experts as a whole approve of a new initiative. AvtoVAZ prepares an update of the lineup and counts on mass production of cars in the average price segment, and for this the modern engine will be necessary, the analyst of Nikachail Vyacheslav Smolyaninov states. According to him, the engine and transmission are more than 20% of the cost of the car. “If now the car costs about $ 7,000, then with a new engine collected in Russia, it will cost 8,000, and if the same engine is brought from abroad, the model will rise in price by another $ 1,000,” says Denis Nushtaev’s analyst.