FAW teams up with Russia's GAZ on trucks

MOSCOW—Russia's GAZ Group said Monday it is planning a joint venture with China FAW Group Corp. to produce the Chinese company's heavy trucks at GAZ's Ural Mountain factory.

"FAW brings their latest generation of heavy trucks and we bring the Miass facility," GAZ Chief Executive Bo Andersson said in a phone interview from Beijing, where he is part of a delegation led by Russian President Dmitry Medvedev.

"FAW has a very new product lineup," using technology licensed from leading Western producers, Mr. Andersson said. "They are very competitive."

He said the venture is likely to be 50-50 but that it is too early to discuss specific investment levels or possible production volumes.

The partners will determine which of FAW's products are best suited to the Russian market and how to localize parts production. The main competition at present are European imports, he said.