NIZHNY NOVGOROD, Russia — GAZ Group, one of Russia's leading commercial vehicle makers, announced on Monday that it has launched production of its new Volga Siber, a version of the Chrysler Sebring adapted for the local market.
The Volga Siber, a joint effort with Chrysler, is to be produced in GAZ's sprawling car plant in Nizhny Novgorod, 250 miles northeast of Moscow.
The Siber is equipped with a stiffer suspension and increased ground clearance to withstand Russia's bumpy roads and harsh winter conditions. Prime Minister Vladimir Putin test-drove a Siber late last week and, according to Interfax, said, "The suspension is a bit tough, but the car can accelerate."
The new model is also expected to withstand stiff sales competition in the booming small-sedan segment. Leonid Dolgov, head of GAZ's light-vehicle division, said the Chrysler-GAZ joint venture will aim at the Renault Logan by pricing its sedans in the $12,000-$20,000 range.
The first cars will roll out in September and will be distributed in 12 Russian regions through the company's 68 dealers, the company said in a statement.
"When fully operational, the Nizhny plant will produce around 100,000 cars per year and enable GAZ and its Western partner to compete with French rival Renault in Russia," Dolgov said. Foreign companies, including Canadian Magna International, helped GAZ set up and fine-tune a new assembly line at the plant and train employees.
GAZ Group has further ambitions in the automotive world. The company hopes to create a $1 billion joint venture with General Motors and is also in talks with Daimler as a possible partner in the venture. If successful, the venture will produce around 300,000 cars per year.
What this means to you: More pent-up demand is being met in this fast-developing market. — Tai Adelaja, Correspondent
The Volga Siber, a joint effort with Chrysler, is to be produced in GAZ's sprawling car plant in Nizhny Novgorod, 250 miles northeast of Moscow.
The Siber is equipped with a stiffer suspension and increased ground clearance to withstand Russia's bumpy roads and harsh winter conditions. Prime Minister Vladimir Putin test-drove a Siber late last week and, according to Interfax, said, "The suspension is a bit tough, but the car can accelerate."
The new model is also expected to withstand stiff sales competition in the booming small-sedan segment. Leonid Dolgov, head of GAZ's light-vehicle division, said the Chrysler-GAZ joint venture will aim at the Renault Logan by pricing its sedans in the $12,000-$20,000 range.
The first cars will roll out in September and will be distributed in 12 Russian regions through the company's 68 dealers, the company said in a statement.
"When fully operational, the Nizhny plant will produce around 100,000 cars per year and enable GAZ and its Western partner to compete with French rival Renault in Russia," Dolgov said. Foreign companies, including Canadian Magna International, helped GAZ set up and fine-tune a new assembly line at the plant and train employees.
GAZ Group has further ambitions in the automotive world. The company hopes to create a $1 billion joint venture with General Motors and is also in talks with Daimler as a possible partner in the venture. If successful, the venture will produce around 300,000 cars per year.
What this means to you: More pent-up demand is being met in this fast-developing market. — Tai Adelaja, Correspondent
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