Kommersant business daily reported that Russian vehicle maker GAZ Group and German car giant Daimler AG plan to invest more than EUR 120 million in the production of Mercedes vans in Russia while the group management has requested the government to provide exclusive benefits for the project

GAZ Group and Daimler AG have worked out a joint investment project for the production of Mercedes Sprinter commercial vehicles at the Russian carmaker's facilities. The expected annual output amounts to 60,000 cars, with production launch scheduled for 2012.

Mr SiegfriedWolf GAZ Group Chairman claims the project has export potential while partnership with Daimler will allow GAZ to fully utilize its capacities stabilize its financial and economic position and develop its own engineering competence on the basis of western innovative technologies. GAZ expects to create its own model based on Daimler vehicles in the future.

In March 2007, GAZ signed an industrial assembly agreement with the Economic Development Ministry on producing British Maxus commercial vehicles in Russia. GAZ controlled Maxus vehicle producer LDV and expected the deal to go ahead. However, the project was stalled due to LDV's bankruptcy, adding that GAZ wanted to use the Maxus production agreement for the manufacture of Mercedes vehicles.

Mr Putin instructed Deputy Prime Minister Mr Igor Sechin, Industry and Trade Minister Mr Viktor Khristenko and Economic Development Minister Ms Elvira Nabiullina to examine Wolf request on the same day he wrote to the Russian premier about the joint project.

(Sourced from Kommersant)