UAZ may form a partnership with a global car manufacturer

UAZ may form a partnership with a global car manufacturer


 

TASS.- Sollers is preparing the UAZ for a partnership with a global car manufacturer. The news was reported by the Vedomosti newspaper, quoting a source familiar with the plans of Sollers, the owner of UAZ.

According to the newspaper, the restructuring of UAZ will aim at the development of the international partnership. Neither UAZ nor Sollers will be able to cope with the investment burden associated with the creation of a new model line, the newspaper wrote, citing the source. For that purpose, the companies need a foreign partner, which would bring its platform for car production under its own brand name, alongside UAZ.

The establishment of the partnership is planned for 2022, as told by the source of Vedomosti, not revealing the names of the potential participants.

The general director of UAZ Adil Shirinov had talked about the possibility of the creation of a new product at the enterprise, during a previous interview. According to Shirinov, UAZ has a niche in the form of a SUV segment and the quality of these vehicles need to be adjusted to an optimal state, as emphasised by the publication.

As announced by Sollers Auto Group on 18 November, the restructuring of UAZ is nearly completed. A new company, PromFinInvest will be separated from the enterprise at the final stage of restructuring. PromFinInvest will focus on the maintenance and modernisation of the secondary assets and the infrastructure at the industrial site of UAZ, as well as supporting the auxiliary operations. In turn, UAZ will retain all the necessary cooperation ties, increasing the competitiveness of its main activity: car production significantly, by reducing overhead costs.