VW In Talks With Russia's Severstal Unit UAZ On Joint Production

Monday , 10:27 am ET

MOSCOW -October 14, 2002, Dow Jones reported that Russian automaker OAO Ulyanovsky Avtozavod , a majority-owned unit of OAO Severstal , said Monday that Germany's Volkswagen AG may choose its premises to produce its sport utility vehicle T-4, starting mid-2004.

The statement comes as Ford Motor Co. and General Motors Corp. both ramp up production at major new production plants in Russia. Renault SA is also considering reviving its plans to produce cars in Russia.

UAZ said the investments would be considerable, but didn't specify and didn't mention any possible production volumes.

The final decision is expected in late November after Volkswagen has looked at other Russian automakers, an UAZ spokesman told Dow Jones Newswires.

"Volkswagen is currently looking at other companies and even other countries, including China," the spokesman said.

A spokesman at Volkswagen in Germany wasn't immediately able to confirm the development.

Company Web sites: http://www.uaz.ru, http://www.volkswagen.de