Isuzu to Start Producing Trucks in Ukraine in 2006

TOKYO, Japan -- Isuzu Motors Ltd, an affiliate of General Motors Corp, plans to begin manufacturing trucks in Ukraine around 2006, the Nihon Keizai Shimbun reported without citing sources.

It will set up a joint venture there with Holding Bogdan, a local bus maker based in Kiev, to assemble auto parts exported from Japan, the business daily reported.

Bogdan will likely take a 50 pct stake in the joint venture, while Isuzu will acquire 20 pct interest and the rest by Japanese trading firm Sojitz.

Isuzu has been supplying 1,000 to 1,500 units' worth of microbus parts annually to Bogdan since 1999. But the joint venture will be the first production base to be created by a Japanese automaker in the former Soviet bloc, the paper said.

Starting with an annual output of several thousand units, the joint venture is slated to export some of the trucks to Russia and other neighboring countries.

Source: AFX News