GM to set up car venture in Uzbekistan

[Newbiewar]

GM to set up car venture in Uzbekistan

Mon Oct 8, 2007 12:19 PM BST

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TASHKENT (Reuters) - General Motors Corp (GM.N: Quote, Profile , Research) has set up a joint venture in Uzbekistan to produce and sell cars in the central Asian state, the Uzbek state auto company said on Monday.

The state company, Uzavtoprom, said in a statement the two had signed an agreement to set up the venture, based on an existing car plant in Uzbekistan with annual production capacity of 250,000 Chevrolet cars.

The statement said GM would hold a 25 percent in the venture with a possibility to raise it to 40 percent. The statement did not say how much the deal is worth and GM could not immediately be reached for comment.

The plant in eastern Uzbekistan was set up in 1996 together with South Korean company Daewoo Motor. Uzavtoprom has been looking for a strategic partner in the project since the Korean firm went bankrupt during a financial crisis in the late 1990s.

[FAPTurbo]

Isn't Uzbekistan the sworn enemy of Kazakhstan?

[Oracle of Delphi]

What's more concerning is that Uzbekistan is a member of Commonwealth of Independent States. Which for all intents and purposes is old Soviet Union states.

[Robert Hall]

What's more concerning is that Uzbekistan is a member of Commonwealth of Independent States. Which for all intents and purposes is old Soviet Union states.

As is Kazakhstan...and doesn't GM have partnerships/operations also already in Russia and Ukraine?

[Newbiewar]

As is Kazakhstan...and doesn't GM have partnerships/operations also already in Russia and Ukraine?

i think the reason for this colaberation is because of the previous daewoo presence in the old factory, may be cheap to tool it to build GMDAT cars...