GM-Avtovaz begins manufacturing cars with safety package

SAMARA, August 1 (Itar-Tass) — The Togliatti-based plant GM-AvtoVAZ on Monday raised prices and restarted its assembly after two weeks of summer vacations. It has started the production of Chevrolet Niva cars with safety package.

The company’s press-service reported on Monday that from August 1 GM-AvtoVAZ has started to manufacture automobiles Chevrolet Niva GLS version and GLC, equipped with ABS of Bosch and airbags of TRW.

According to the press service, effective August 1st of 2011 GM-AVTOVAZ launches production of Chevrolet NIVA equipped with ABS (anti-locking brake system) produced by Bosch and airbags produced by TRW for GLS and GLC versions. ICV (in-country validation) tests have been carried out successfully in Russia, Sweden, Germany and Spain. Information about start of production of LC with Safety package as an option will be provided later.

Effective August 01st of 2011 retail prices on modified Chevrolet NIVA GLS and GLC will be increased by 25,000 roubles, while retail prices on Chevrolet NIVA L and LC will be increased by 5,000 roubles.

So, the recommended retail price for Chevrolet NIVA L will be 439,000 roubles, LC — 468,000 roubles, GLS with the safety package — 508,000 roubles, GLC with the safety package — 535,000 roubles.

Price increase is due to introduction of the safety package, as well as price increase on components and growth of the operating costs, the company said in the release.

CJSC GM-AVTOVAZ started its existence from the 27th of June in 2001 when the general framework agreement was signed by representatives of General Motors, AVTOVAZ and European Bank for Reconstruction and Development. Joint Venture was set up at the foundation meeting on the 30th of July in 2001 and was registered in Russian Ministry of Justice on the 2nd of August in 2001, according to the company website.

First employees were recruited on the 27th of August in 2001 and the excavation works at the site started in October.

The shareholders contributed capital is $238.2 million: General Motors – $99.1 million by cash and equipment, 41,61%; AVTOVAZ – $99.1 million by intellectual property (patents and trade mark on Niva 2121), buildings, etc., 41,61%; European Bank for Reconstruction and Development (EBRD) – $40 million in cash, 16,78%, and loan facility for $100 million.

In March 2009 the Company launched a facelifted version of the Chevrolet NIVA. Over 60 engineering changes have been implemented to improve quality of the Chevrolet NIVA.

In May 2010 The Company started production of improved Chevrolet NIVA equipped with drive shafts with constant velocity joints instead propeller shafts and transfer box with dual race bearings for output shafts. Changes introduced allowed not just significantly reducing noise and vibration, but also improving quality, durability and comfort of Chevrolet NIVA.

In 2002 456 vehicles came off the JV’s assembly-line, in 2003 – 25,235, in 2004 – 55,150, in 2005 – 51,810, in 2006 – 47,881, in 2007 – 55,052, in 2008 – 54,654, in 2009 – 23,101 vehicles.

In 2010 a total of 36,996 Chevrolet NIVA vehicles rolled off the line of the JV. 2010 year results are 60,15 % more than in 2009. A total of 348,425 Chevrolet NIVA vehicles were sold since the start of production including 29,507 units to CIS countries (data on 01.01.2011).

Currently 150 dealers provide Chevrolet NIVA sales in the Russian Federation together with 8 dealers and 3 distributors in CIS countries. According to the data of Association of European Business in RF in 2004 -2008 Chevrolet NIVA became the best-selling SUV on the Russian market. And in 2006 it was awarded with the prize ‘Offroader of the Year 2006’ in the category ‘Compact SUV’.


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