Joint Venture Of Russian 'GAZ Group" And Chinese "FAW"

The holding company "GAZ Group" and the FAW company (First Automotive Works) have signed a memorandum of assembly for Chinese trucks at the automotive plant "Ural". 

Experts see the possible deal as being mutually beneficial. In their view, the project's success will entirely depend on the capacity and willingness of the Chinese side to invest in the plant, which is located in the Chelyabinsk region.

 

The Russian and Chinese companies have proposed to create a joint venture together. The "GAZ Group" will contribute the production capacity of its auto plant "Ural" (in the Chelyabinsk region) and its own service network, while FAW will offer technology and its Russian sales network. 

The automotive model and the volume of output are still under discussion. The Russians would like to adapt a truck for use in Russia and to make their own engine for it. 

"GAZ Group" currently produces the YAMZ-650 and YAMZ-530 engines in Yaroslavl, under license of Renault Trucks. These are designed by Russian and Austrian engineers. The Chinese company plans to compete on the Russian market against Russian and foreign manufacturers of construction and road-building equipment, and GAZ's dealer and service network should be a big help in this.