German auto giant Volkswagen and Russian vehicle maker GAZ Group are to invest 200 million euros in assembly of cars at GAZ's production plants, GAZ Group President Bo Andersson said on Tuesday.
"Investment in production capacities will total 200 million euros," Andersson said, adding that the companies intended to assemble 110,000 cars annually.
The GAZ facilities will start assembling Skoda Yeti cars in fall 2011 and start preparations for the assembly of the Volkswagen Jetta and Skoda Octavia in 2012, he said.
Volkswagen Group Rus and GAZ Group, part of Basic Element holding company, owned by Russian billionaire Oleg Deripaska, closed an agreement in February on assembly of Volkswagen and Skoda vehicles at GAZ's plant in the central Russian city of Nizhny Novgorod.
