GM-Avtovaz Boosts Chevy-Niva SUV Model Daily Output

MOSCOW March 31, 2003; Dow Jones reported that GM-Avtovaz, a joint venture of General Motors Corp. (GM) and Avtovaz , is boosting the daily output of its Chevy-Niva sports utility vehicle by launching a two-shift work-day, a spokesman said Monday.

"We are planning to double the daily output to about 70-80 units from the current 35-40," Vladimir Derbinyov told Dow Jones Newswires.

Earlier GM-Avtovaz said it was aiming to produce 35,000 sports utility vehicles in 2003.

The company is also planning to introduce a third shift in August and open a new painting shop.

"The new paint shop should be opened on April 2," Derbinyov said, adding the third shift should help increase the daily output to over 120 units.

GM and Avtovaz each hold a 41.5% stake in the joint venture, which started operating last September. The European Bank for Reconstruction and Development holds the remaining 17%.

Company Web sites: http://www.vaz.ru; http://www.gm.com