Severstal Auto intends to hold talks with leading foreign car manufacturers on producing a foreign off-road vehicle, light goods vehicle and minibus at its Ulyanovsk Car Plant (UAZ). The vehicles would have a price tag of over USD 10,000. According to the company's press office, this was announced in Moscow yesterday by Vadim Shvetsov, the general director of Severstal Auto and chairman of UAZ. Shvetsov was speaking at a conference at the Adam Smith Institute devoted to developing the car industry in Russia.
Severstal Auto also intends to collaborate with foreign car manufacturers on implementing a project to produce foreign engines at the Zavolzhsk Engine Factory (ZMZ). However, Shvetsov stressed that Severstal Auto would continue to develop car holdings belonging to the Severstal group. In particular, UAZ's range of models will be modified in the future and a new off-road vehicle and lorry in the USD 6-8 thousand price range will be launched.
Severstal Auto is part of the Severstal group and is responsible for running UAZ and ZMZ. The Ulyanovsk Car Plant was established in 1941 and currently manufactures 14 models of off-road vehicles and four-wheel-drive minibuses. In 2002 UAZ produced 69,599 vehicles, which represents a fall of 2.1% on the previous year.
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