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Russia's Avtovaz buys out GM's stake in 50/50 JV

Russian carmaker OAO Avtovaz said Dec. 9 that it has agreed to buy out the stake held by General Motors Co. in the two companies' 50/50 joint venture.

Financial terms of the transaction were not disclosed.

Avtovaz said the CJSC GM-Avtovaz factory located in Avtovaz's Togliatti site will continue to produce and sell Niva vehicles under the Chevrolet brand for an unspecified amount of time. After that point, the cars will be rebranded as Lada products.

There will be no change in staffing, Avtovaz said. Existing contracts with suppliers and Niva dealerships will also remain the same during the transition.

The former joint venture will eventually be renamed, the company added.

Avtovaz is a wholly owned unit of Renault SA.