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Ukrainian car companies to compete with AvtoVAZ · 2006-12-20 16:39

AvtoVAZ carKommersant informs, that on 20 December two Ukrainian car companies, Bogdan and Ukravto, lay the cornerstone for their auto plant in Nizhny Novgorod, Russia. The construction is due to be completed by 2009 with total investment of $770m.

The plant will produce record for Russian market 160,000 cars a year, as well as 6000 buses, truck and bus engines and bus chasses.

Kommersant analysts predict the Bogdan-Ukravto project will have a negative impact on AvtoVAZ, the main Russian car producer. Lanos, Aveo and Sens models, assembled by Ukrainian company in Russia, will cost $10,000 and will be in the same price segment as the new Avto VAZ Class C models.

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