GM To Build Subcompact Chevy in Uzbekistan

TASHKENT, Uzbekistan — General Motors will build a new Chevrolet subcompact here as part of a joint venture with Uzbek Uzavtosanoat. The new car has been designed and positioned primarily for emerging markets. Although the details haven't yet been announced, most analysts believe the model will be the next generation of the Matiz, which debuted last year in South Korea and is sold overseas as the Chevrolet Spark.

It is clear that the new subcompact won't replace the old version of the Matiz currently being built by GM Uzbekistan, which continues to be in great demand here and in Russia. GM Uzbekistan also produces and sells the Lacetti and Captiva.

Currently GM owns a 25 percent stake in GM Uzbekistan, whose total production is 250,000 cars a year. Investment in this latest project is expected to exceed $125 million and production volume for this model should reach 50,000 units per year.

Inside Line says: The new agreement will also provide Chevrolet with the opportunity to continue its business development in Uzbekistan and other CIS countries as well as Russia. — Evgeniy Vorotnikov, Correspondent