Russia Week, Day 3: GM Flirts With Avotor

Bertel Schmitt
by Bertel Schmitt

“Russia is an up and coming country with a sudden influx of foreigners,” says my favorite mail-order bride site. “there is a great deal of fascination about foreigners.” No kidding. The world’s automakers must be on a speed-dating jaunt through Russia. Today, Reuters reports that GM and Russia’s Avtotor are in joint venture talks. The plan: At least 300,000 cars per year. It’s not all idle talk, because Valery Gorbunov, Avtotor’s chief executive, told Reuters that a JV is definitely in the cards. However, no final decision has been made.

GM has its own production in Russia that makes the Chevrolet Cruze and Captiva, in addition to Opel’s Astra and Antara. GM also entered a joint venture with Oleg Deripaska’s GAZ to assemble the Aveo. That same GAZ is now said to be in final discussions with Volkswagen.

Avtotor already assembles the Chevrolet Lacetti, Chevrolet Aveo and a previous generation of Opel Astra. It will be very challenging to track who makes what with whom in Russia.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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 5 comments
  • Twotone Twotone on Feb 21, 2011

    I had a great time living and working in Moscow from 1992 - 1998 but driving my Lada Zhiguli 06 was not one of them.

  • Skor Skor on Feb 21, 2011

    That chick looks thrilled being photographed with the G. Gordon Liddy wannabe.

    • Detroit-X Detroit-X on Feb 22, 2011

      Some Captions: Dah! I lyke Amerikan Mehn! Easter-egg nail pohlish is ah turn-on, dah? Doon't peek me up at my haus. I meeht you sumwher nice. Honey, I get paid in lots of small bills. Cahn you ehxchange for beeg bills? Dah??

  • Blowfish Blowfish on Feb 21, 2011

    Finally the Mother country is playing more balls with automakers now. Better late than never.

  • Cmoibenlepro Cmoibenlepro on Feb 22, 2011

    If GM enter Joint Ventures with multiple Russian companies, does it means that different GM models will be sold in different dealers? Like if you want an Aveo you need to go to GAZ dealers, and for Cruze you go to Avotor dealers? That will create customers confusion and damage GM brand equity, do you agree?

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