AVTOVAZ, a leading Russian car manufacturer, has signed an agreement with General Motors on the repurchase of the 50% share in GM-AVTOVAZ Togliatti JV from the American company. The joint venture will become a 100% subsidiary of AVTOVAZ Group. The Parties are not disclosing financial details of the transaction.
Under the Agreement, the plant owned by the Joint Venture will continue manufacturing and selling Niva cars under the Chevrolet brand for a certain period of time, and eventually the cars will obtain LADA name plates. No changes are being planned for the employees of both companies. The standing contracts with Niva suppliers and dealerships are remaining unchanged during the transition period. In the future, GM-AVTOVAZ will also be renamed.
“I am grateful to our GM partners for more than 18 years of fruitful cooperation. Under the Agreement, AVTOVAZ will obtain a second classic SUV in its line of cars. The Niva offer will be organically complemented by a legendary 4x4 car in support of the further development of AVTOVAZ. Historically, the production processes of the Joint Venture have been deeply connected with the main AVTOVAZ site in Tolyatti, which is an excellent starting point for further development in order to improve customer satisfaction of our legendary Niva. I extend a warm welcome to all GM-AVTOVAZ employees who are now joining the AVTOVAZ Group, ”said Yves Caracatzanis, President and CEO of AVTOVAZ.