Volkswagen in talks to buy stake in Russian light commercial vehicles manufacturer GAZ
02 Dec 2017
German carmaker Volkswagen (VW) is in talks to buy a stake in Russian manufacturer of light commercial vehicles GAZ, Reuters yesterday reported, citing five sources familiar with the talks.
It was not immediately clear how big a stake is being discussed or the value of the deal, the report said.
GAZ is the core company of GAZ Group holding, a part of Basic Element business group that holds the assets of Russian oligarch Oleg Deripaska.
''There are talks, they are trying to reach an agreement. Deripaska has long been looking for a partner and VW does not have a Russian partner,'' Reuters said quoting one well-placed industry source.
Nizhny Novgorod-based GAZ Group specialises in developing and producing light and medium commercial vehicles, buses, heavy-duty trucks, power trains and automotive components.
VW already has an existing agreement with GAZ to mke Volkswagen and Skoda cars at GAZ's Gorky plant until 2025.
The two companies were also considering a strategic partnership for supplies and joint assembly of components, and possible projects will be examined in a next phase.
GAZ already uses components from VW's Scania and MAN heavy-truck divisions for its buses.
VW has a 11.2-per cent market share in Russia for cars, while GAZ holds over 50 per cent in light commercial vehicles segment.