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Exclusive: GM to Scale Down Venture with AvtoVaz? just-auto.com Reports

10 November 2000

Exclusive: GM to Scale Down Venture with AvtoVaz? just-auto.com Reports

    LONDON, Nov. 10 General Motor Corp's proposed investment
of $500 - $600 million to build cars in Russia with AvtoVaz may now fall below
$400 million with the mid-sized Astra car project cancelled according to an
exclusive report by just-auto.com .
    The news comes as a blow to the Russian automotive industry and reinforces
the prolonged hesitation of foreign manufacturers to invest there.
    The just-auto.com report at http://just-auto.com/news_detail.asp?art=18561
says that originally two types of vehicle were to be produced under the
project but this has been reduced to just one -- a small sports-utility
vehicle.
    David Leggett, Managing Editor of just-auto.com says:
"GM, AvtoVaz and the European Bank for Reconstruction and Development have all
refused to comment, but this seems to confirm nervousness on the part of the
financial backers.  This is a body blow for the Russian auto industry and will
reduce confidence still further."

    For the full exclusive report, please see:
http://just-auto.com/news_detail.asp?art=18561

    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.