The new venture has a projected production capacity of 250,000
cars a year, the companies said in a statement released late Monday.
The investment is the latest by the U.S. automaker in the
ex-Soviet republic, whose relations with the United States plummeted
following the 2005 uprising in Andijan.
Human rights groups and witnesses say hundreds of civilians were
killed by government troops during mass protests in the eastern
Uzbek town. Western governments harshly criticized the action and
called for an independent investigation.
Uzbekistan in turn kicked U.S. troops out of a base being used in
support of military operations in neighbouring Afghanistan.
The joint venture, GM Uzbekistan, will be set up at a plant in
the town of Asaka in the Andijan region, where Uzavtosanoat
currently runs a factory that was originally a joint venture with
South Korea's Daewoo Group.
The plant currently assembles cars based on kits supplied by GM
Daewoo Auto & Technology Co., the South Korean unit of General
``GM will own 25 per cent plus one share in this joint venture
with the option to increase its stake to 40 per cent' ' GM Europe
President Carl-Peter Forster said.
The joint venture will initially assemble three Chevrolet models
_ the Captiva, Epica and Tacuma _ with full-scale production slated
to begin in the next three years.
Hyundai Motor Co. had also sought to buy up Uzbekistan-Daewoo
venture, but talks collapsed last year over differences on the