GM Jumps Into Bed With Russian "Undesirable" Deripaska

by Robert Farago

Published: September 4th, 2008

gm jumps into bed with russian undesirable deripaska

So there we were, joining the speculation that Russian, uh, “oligarch” Oleg Deripaska was about to scarf GM’s HUMMER brand. While that turned out to be a journalistic damp squib, the Russian billionaire that the feds won’t allow on our shores (now that his $500k bribe to former Senator Bob Dole has expired) has found a way to join hands with The General. The Moscow Times reports the deal: “GAZ, billionaire Oleg Deripaska’s automaker, will partner General Motors in Italian engine maker VM Motori, after agreeing to buy the 50 percent the U.S. company does not own.” The Veep of GM Powertrain Europe is thrilled. “Our joint venture agreement with GAZ Group provides business opportunities to expand our diesel engine business with new customers,” Mike Arcamonet announced. To that end, “GAZ will gain the right to build the Italian producer’s light-diesel engines in Russia under license after acquiring the stake from Detroit-based Penske. This according to Yelena Matveyeva, a spokeswoman for Deripaska’s Russian Machines transportation division. Matveyeva “declined to disclose the financial terms” of the deal. I wonder why.