U.S. General Motors (NYSE: GM.N) and Russia's Avtotor plan to form a joint venture to produce at least 300,000 cars per year in Russia, two sources in the auto industry told Reuters on Monday.
Valery Gorbunov, Avtotor's chief executive, told Reuters that the final decision has not been taken yet but the joint venture is being considered as one of possible options.
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The press department of GM in Russia declined to comment.
GM in Russia produces up to 60,000 units a year of the Chevrolet Cruze and Captiva models along with Opel's Astra and Antara.
Avtotor has a capacity to produce up to 200,000 cars a year. Currently, it assembles Chevrolet Lacetti, Chevrolet Aveo and a previous generation of Opel Astra.