Volkswagen signs joint venture for assembly in Uzbekistan
Volkswagen Group’s division in Russia - Volkswagen Group Rus has entered into a joint venture with the Uzbek state-owned corporation Uzavtosanoat to assemble cars in Uzbekistan.
The deal was formalised in an inter-governmental agreement signed by German president Frank-Walter Steinmeier and Uzbek president Shavkat Mirziyoyev in Tashkent.
VW’s investment in the project is estimated at €40m ($44.6m), an Uzavtosanoat spokesperson told local news outlet Sputnik, and the partners are assessing the existing capacities and infrastructure in Uzbekistan to best determine where to localise VW production. That assessment is expected to be finalised by the end of this year and there is so far no indication of whether this entails building a new plant or repurposing an existing facility.
As of today, Uzavtosanoat runs three automotive plants in the country, with only the Asaka plant assembling light passenger vehicles. In December, Uzavtosanoat reported that the plant, which it took full ownership of from GM at the beginning of this year, had reached full annual output capacity of around 200,000 vehicles....