Russia will produce and sell China FAW Heavy Trucks

China FAW Group Corporation and Russia’s GAZ Group signed a memorandum of cooperation in Beijing. Its main content is to set up a joint venture company in Russia to produce and sell medium and heavy trucks under the FAW brand.

Both partners will jointly decide which product types of FAW can best meet the needs of the Russian market and how to localize the production of accessories. The joint venture company's products will be sold first in the Russian market. In the future, the two parties will jointly negotiate and choose the opportunity to open up the CIS and other markets.

GAZ said that China FAW will provide the latest generation of heavy truck technology, and GAZ is responsible for providing production equipment. China FAW has the latest product line and has obtained technology licenses issued by major Western car manufacturers and is very competitive. It is reported that the two parties will sign the final joint venture agreement as soon as possible. The two companies are likely to hold 50% of their respective shares, but the specific investment amount and possible production scale have not yet been disclosed, but the new joint venture will involve production, sales and after-sales service.

GAZ will provide its new diesel production line at the Yaroslavl plant. At present, GAZ's Ulashan Miass plant only produces off-road trucks.

At present, the biggest competitor in Russia's heavy truck market is European imports. However, among the heavy-duty truck manufacturers in the world, the scale of production and sales of FAW's medium and heavy trucks has been at the forefront for many consecutive years. Previously, FAW's heavy truck products have been exported to many countries and regions in Europe, Africa and Asia, and established assembly, marketing and service bases abroad.

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