Avtovaz
ORG
Avtovaz
The federal agency for industry, Rosprom, last week proposed investing money from the Russian oil-windfall fund into a huge new automotive works, to be built from a merger of the Russian partner, Avtovaz and other struggling domestic manufacturers. Behind the recent dispute lies a change of leadership two months ago at the Russian partner, Avtovaz. The new factory would build cars, minivans and sport utility vehicles, and be able to produce nearly half a million cars a year. That could make G.M.'s cooperation with Avtovaz, which builds S.U.V.'s, less than essential, leading analysts to speculate that there were larger issues at stake in the dispute over engine prices. The federal agency for industry, Rosprom, last week proposed investing money from the Russian oil-windfall fund into a huge new automotive works, to be built from a merger of Avtovaz and other struggling domestic manufacturers. The new factory was able to produce nearly half a million cars in a year which could make G.M.'s cooperation with Avtovaz, which builds S.U.V.'s, leading analysts to speculate that there were larger issues at stake in the dispute over engine prices. Boris S. Alyoshin who was the director of Rosprom won a seat on the board of Avtovaz, along with other representatives of the government and of a state-owned weapons trading company. Avtovaz's spokesman declined to comment on the two companies' dealings.