RIA Novosti citing Mr Bo Andersson GAZ Group President as saying that German auto giant Volkswagen and Russian vehicle maker GAZ Group are to invest EUR 200 million in assembly of cars at GAZ's production plants.

Mr Andersson said "Investment in production capacities will total EUR 200 million, adding that the companies intended to assemble 110,000 cars annually.”

He said that the GAZ facilities will start assembling Skoda Yeti cars in fall 2011 and start preparations for the assembly of the Volkswagen Jetta and Skoda Octavia in 2012.

Volkswagen Group Rus and GAZ Group, part of Basic Element holding company, owned by Russian billionaire Mr Oleg Deripaska closed an agreement in February on assembly of Volkswagen and Skoda vehicles at GAZ's plant in the central Russian city of Nizhny Novgorod.

(Sourced from RIA Novosti)