Reuters reported Wednesday that Russia's largest automaker AvotVaz and its second-largest bank VTB have teamed up to implement a $4-5 billion dollar automotive "mega-project" to produce new engines and cars.

AvotVaz, home of the infamous Lada brand, is trying to capture a bigger share of the $22 billion Russian auto market in the face of booming foreign competition.

The new plant will take about 3 years to complete, depending in part on VTB's success in raising the necessary financing.

AvotVaz will face an uphill battle with its foreign competitors - in other news Wednesday, Chinese automaker Chery announced a joint venture to start auto production in Russia, while Nissan is looking for a site for a new plant.

[Source: Reuters]