GM Uzbekistan suspends car sales
By Kamila Aliyeva
GM Uzbekistan suspended the sale of cars in Uzbekistan due to uncertainty in connection with the expected price increase, UzA reported citing the press service of the company.
The agency noted that signing contracts for the purchase of GM Uzbekistan’s cars were stopped in car dealerships. In addition, there is a rise in prices in the car market.
“Prices for GM Uzbekistan’s cars have not changed. The issue of price increases, which was discussed on July 30 at the International Press Club, is being comprehensively studied together with relevant organizations and specialists, taking into account the positive and negative consequences. The price increase is expected, therefore, due to the fact that the specific cost has not been determined, the conclusion of contracts has been suspended,” the statement said.
The representative of the press service of GM Uzbekistan recalled that the price-list spreading in social networks does not correspond to reality, since new prices have not been established yet.
Chairman of the Board of Uzavtosanoat Shavkat Umurzakov said on July 30, 2018 that GM Uzbekistan will increase the prices for cars by an average of 14 percent from August 1, 2018.
He went on to say that the production capacity of the Asaka plant is 290,000 cars per year, but only 160,000 cars is being produced.
“Due to the fact that the plant only operates at 50 percent of its capacity, the cost of machinery becomes high. This affects the buyers' pocket and negatively affects the export potential of the enterprise,” he said.
GM Uzbekistan, formerly known as UzDaewooAuto, was created in 1996 on a parity basis by Uzbekistan and South Korean Daewoo Motors.
In 2005, Uzbekistan acquired Daewoo's shares in UzDaewooAuto. Two years later Uzavtoprom (Uzbek Association of Automotive Industry Enterprises) and the U.S.-based General Motors signed an agreement to establish the GM Uzbekistan with an authorized capital of $266.7 million.
GM had previously held a 25 percent stake in the joint venture. Previously, it became known that Uzavtosanoat bought the 15 percent of shares.
Currently, 10 Chevrolet and Ravon car models are being produced at three production sites of the company.
The production of cars by General Motors Uzbekistan Ltd decreased by 7.4 percent in 2017 and amounted to more than 82,000, whereas in 2016, the production decreased by 52.5 percent, and in 2015 – by 24.5 percent.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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