Isuzu In Russian Truck Assembly Joint Venture

Posted on July 30, 2007

Isuzu Motors Ltd. has signed a joint venture agreement with Severstal-Avto to assemble 25,000 commercial vehicles and trucks a year in southern Russia. Severstal-Avto will control 66% of the operation to be located in the Republic of Tatarstan, while Isuzu will have a 29% share. The Japanese trading firm Isuzu Sojitz will also own 5%.

"The Russian market is growing rapidly and is becoming more and more important for Isuzu," Isuzu's general director, Yoshinori Ida, said at a signing ceremony in Moscow. Ida said the project will help Isuzu gain more than 10% of Russia's truck market. The venture will produce a range of trucks capable of carrying loads from 1.5 to 25 tonnes, and diesel engines assembly should follow.

The total investment in the joint venture will be approximately $13.7 million, not counting capacity that will be used that is part of an existing joint venture with Fiat.