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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]