GM Uzbekistan joint venture to build and sell Chevrolets
10.10.2007, 22:10
Chevrolet Captiva
General Motors, the world's largest carmaker, has announced a joint
venture with UzAvtoSanoat to assemble and distribute Chevrolet cars in
Uzbekistan, the central Asian republic and part of GM Europe region. A
press conference on this occasion was held at InterContinental hotel in
Tashkent on 8 October.
The joint venture, which will be called GM Uzbekistan, will extend Chevrolet's rapid expansion in Eastern Europe and Asia.
"Chevrolet has become the fastest growing brand in Europe,
demonstrating its strong appeal especially in the opportunity markets
of Eastern Europe", said Carl-Peter Forster, President of General
Motors Europe. "The start of operations in Uzbekistan and the launch of
a series of new Chevrolet models will help us continue our rapid
growth."
Sales of Chevrolet models in Europe have increased
32% year-to-date, with 328,000 units registered through September.
Chevrolet is on track to reach the 450,000 unit mark this year, a more
than 30% increase over 2006.
Under the terms of the joint
venture, General Motors will hold a 25% equity stake with the option of
increasing this amount in the future. General Motors will provide new
technology, manufacturing expertise and training for the joint venture,
which will have access to the portfolio of GM's largest and fastest
growing global brand, Chevrolet. Senior GM managers will hold key
positions in the new joint venture, particularly in manufacturing,
quality, and sales and marketing.
"We are very pleased to
join forces with our reliable manufacturing partner in Uzbekistan,"
said Michael Grimaldi, President and CEO of GM Daewoo Auto &
Technology. "Demand is high around the world for the new Chevrolet
models we build in Korea. The new joint venture means we will have
added manufacturing capacity to assist us in meeting the growing demand
for our cars in Central Asia and Eastern Europe."
Chevrolet Epica
The GM Uzbekistan manufacturing plant, situated in Asaka, Andijan
Province, 350km from the Uzbek capital, Tashkent, has a total
manufacturing capacity of 250,000 units which, over time, is to be
fully utilized for producing Chevrolet cars. The first three Chevrolet
models, Captiva, Epica and Tacuma, will be assembled from SKD kits
starting immediately, with other carlines to be added for assembly from
CKD kits and full-scale production over the next three years.
"Entry into the General Motors family gives access to a modern model
line and modern automobile technologies", asserts Rustam Azimov, Vice
Prime Minister of the Republic of Uzbekistan. "Quality improvement,
growth of production and consumer requirements' satisfaction in
Uzbekistan and in other countries, where Uzbek cars rightly deserved
popularity and recognition, these are key points to which the new joint
venture will focus on".
The new Chevrolet models will be sold
initially at seven showrooms in Tashkent and other major Uzbek cities.
By the end of 2008, the dealer network is expected to grow to over 60
showrooms as the Chevrolet range for the Uzbek market is extended to
additional carlines.
Until now, the Asaka assembly plant,
which started production in 1996, has been building the Daewoo Matiz,
Nexia and Damas for sale both in the domestic and neighboring markets.
These models will be lined up along with Chevrolet models: Captiva,
Epica and Tacuma during the interim period.
Chevrolet Tacuma
"The newly created enterprise will increase production volumes to 250
thousand cars per year", said Ulugbek Rozukulov, the Chairman of Board
Uzavtosanoat SC. "Besides, along with production of new models, we are
planning to implement a number of localization projects of KD parts in
Uzbekistan, which also will contribute to the development of the
industry".
The assembly plant will begin using GM's common Global Manufacturing
System, in which performance is improved through the consistent
adoption of five principles: people involvement, standardization,
built-in quality, short lead times and continuous improvement. The
principles are interrelated and implemented as a complete system. The
plant will also be integrated into General Motors' global purchasing
and supply chain with a view to increasing the quantity of components
and materials sourced on the domestic market.
With a
population of 27 million (up 7 million in the past 15 years),
Uzbekistan is an auto market with significant potential for further
expansion. The country's economy has grown by an average of 7% over the
past five years. In 2006, vehicle sales reached a total of 65,600, 19%
more than in the previous year.
