BAIC Group forms JV with AMS Auto in Russia

Beijing Automotive Group Co. Ltd (BAIC Group) announced the establishment of a joint venture automotive company between two companies operating under BAIC Group, namely the Beijing Automotive Works Co. Lt d (BAW) and BAIC International Corp., and BAW Motor Corp. (BMC) operating under AMS Auto of Ulyanovsk, Russia. The joint venture is called BAW-RUS Automotive Co. Ltd. Its main business will be commercial vehicle assembly, manufacturing and sales. BAIC Group is the first major Chinese automotive group to establish a joint venture in Russia after the economic crisis.
The total investment for the joint venture is about US $ 176 million with a registered capital of US$20 million. BAW, BAIC International and BMC will hold respectively, 42%, 8% and 50% of the shares.
The JV will gradually reach an assembly line totalling an estimated 60,000 units per year. The yearly capacity will reach 20,000 units through KD (knockdown kit) in the first phase from 2012 to 2015. The products, covering light, medium, and heavy cargo trucks, will all be sold under the BAW brand in Russia.Nike Air Force 1