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GAZ Group announces $2.0 billion investment programme

1st November 2007 Print
On the opening day of the European Road Transport Show, in Amsterdam, GAZ Group has announced a $2.0 billion investment programme that’s set to spearhead further growth for the rapidly expanding automotive specialist.

Erik Eberhardson, Head of the Automobile Division of Russian Machines, GAZ Group’s parent company, announced the multi billion US dollar investment programme, which is part of an ambitious four year plan.

Mr Eberhardson outlined the plan at an international press conference. In addition to the renewal of up to 90 per cent of the current range of GAZ Group products, there will also be a new powertrain and the consolidation of research and development resources into a Unified Engineering Centre.

Speaking at the event, Mr Eberhardson said: “We have grown our revenues by over 30 per cent in each of the last five years and our plan is to continue at this level through the medium term. Our investment plans reflect our determination to be one of the global players in the international commercial vehicle market.”

Global presence will be achieved through acquisitions, partnerships and strategic alliances and to illustrate this point Mr Eberhardson cited the recent stake holding in the Canadian automotive parts maker, Magna International, the partnership with AVL List GmbH (Austria) in developing a new medium sized diesel engine and the acquisition of LDV Group in 2006.

“We are at the start of a long and exciting programme which will see GAZ Group grow on the world stage, competing effectively with the very best in our industry,” Mr Eberhardson said.