Sollers Group and Isuzu Motors will invest 6 billion rubles in the new JV

Sollers Group and Isuzu Motors will invest 6 billion rubles (approximately $96 milion) in the establishment of a joint venture in Ulyanovsk on equal terms, as stated by Sollers.

The joint venture will carry out a technological partnership, including the development and  launch of a new product in medium-tonnage trucks segment with a high localisation rate, as announced by the official representative of Sollers.

7000 vehicles will be manufactured annually, approximately 30% of which will be exported through the Isuzu Motors’ network.

The joint venture has plans to create a new production facility in Ulyanovsk, where other Isuzu and UAZ vehicles will also be manufactured with a localisation rate of over 80%, including localised production of engines, gearboxes, frames and electronic engine management systems. Locally manufactured castings and Russian production materials will be used within the framework of the project, in addition to the localisation of the components and assemblies.

The investment in research and development will exceed 1,3 billion rubles within the scope of the development of the project in Ulyanovsk.

Moreover, Sollers Group and Isuzu Motors have intentions to make additional investment in new technologies along with the progression of the project, in relation to the development of gas engine automobiles, hybrid power plants using electric traction, as well as autonomous control technology and software for telematic services, according to Sollers.

Source: RusAutoNews.Com