Russia: Exclusive -- just-auto.com Interviews GM VP David Herman

19 September 2000
Russia: Exclusive -- just-auto.com Interviews GM VP David Herman
    LONDON, Sept. 19 http://www.just-auto.com -- General
Motors Corp, the world's largest automaker, is on the verge of announcing its
biggest project in Eastern Europe: a complex and innovative venture of
$500 million-$600 million to build cars in Russia with AO AvtoVAZ, producer of
Lada vehicles.
    Strikingly, plans call for production of a Russian-designed model that
likely would don GM's Chevrolet badge - a $7,500 all-wheel-drive off-roader
that would be exported widely as the cheapest sports-utility vehicle in the
world.
    As the US automaker will decide soon whether to approve the deal,
just-auto.com talked exclusively to David J Herman, GM's vice president in
charge of the former Soviet Union.  See
http://www.just-auto.com/features_detail.asp?art=283 .
    In a two-hour interview at his office in Moscow recently, Herman detailed
the substance of the plans as well as their context and logic, speaking with
fresh insight on an array of automotive issues in Russia and developing
economies generally.
    "This interview offers a rare view onto the intricacies of launching a
major venture in a difficult yet important market," said David Leggett,
managing editor of just-auto.com.
    "It also is the first in a series of Q&As by just-auto.com to explore key
issues with industry leaders. The flexibility of our website enables us to
re-define this format of journalism, as we can enhance interviews with a
variety of graphics in ways traditional media cannot. In the Herman piece,
readers will find analysis, data, forecasts and photos -- all mixed into the
flow of questions and answers to add depth to the conversation."
    The interview touches on the US automaker's new thinking about emerging
markets. This is a timely topic, given GM's rekindled interest in Daewoo Motor
Co, following news last week of Ford Motor Co breaking off talks to buy the
bankrupt Korean producer.
    Much of Daewoo's value lies in its operations in Eastern Europe and the
ex-USSR, where GM already has a diversified strategy, bolstered by a new
partnership with Fiat Auto SpA and strengthened ties with Suzuki Motor Corp.
    In particular, how would the AvtoVAZ venture fit into GM's globalisation
plans? This is among the critical questions that Herman tackles in the Q&A at:
http://www.just-auto.com/features_detail.asp?art=283
    just-auto.com is the premier online portal for automotive industry
professionals worldwide. Targeted specifically at industry and business
professionals the site provides a single point of reference for independent
automotive industry information.