The maker of Russia's popular Gazelle and Sobol trucks this year has started assembling light trucks with Steyr diesel engines for export to Argentina.
Gaz is also seeking a joint-venture partner in Egypt to assemble vehicles and build up a supplier base. Gaz already exports Gazelles and Gaz-66 army trucks to Egypt. Local assembly would lower vehicle prices and stimulate local demand in Egypt, said Gaz chief Nikolai Pugin.
Gaz is negotiating with Russia's Diamant bank for financing for two projects - a $300 million plant to build 200,000 Steyr diesel engines a year, and for $300 million to develop a front-wheel drive car.