Uzbek automaker UzDaewooAuto plans to launch serial production of Lacetti cars at a cost of US$47.7 million sometime in October-December 2008, a spokesperson for the plant’s owner, Uzavtoprom, told Prime-Tass Wednesday.

UzDaewooAuto has already signed a US$41.5 million contract with South Korea’s General Motors Daewoo and Technology (GM DAT), a subsidiary of USautomaker General Motors (GM), on the supply of equipment to set up the production, the spokesperson said.
The production capacity of the plant is expected to amount to 30,000 cars annually, including 5,000 cars earmarked for export.

UzDaewooAuto plans to finance the project using a US$47.7 million six-year interest-free loan provided by Uzavtoprom, the spokesperson said.

UzDaewooAuto started assembly production of Daewoo Lacetti cars in August 2003. Since that time, the plant has produced 6,345 units, most of which were sold on the domestic market.

UzDaewooAuto was set up on a parity basis by state-owned Uzbek automaker Uzavtoprom and South Korean automaker Daewoo Motor. The plant was launched in 1996. In May 2005, Uzavtoprom bought Daewoo’s stake for US$110 million. In October 2005, UzDaewooAuto extended a component supply agreement with General Motors until 2010.

In 2006, UzDaewooAuto’s car output rose 38.7% on the year to 140,080 units, Uzbekistan’s State Statistics Committee said earlier.

UzDaewooAuto aims to make 180,000 cars in 2007 and 200,000 cars in 2008.