Russian Billionaire Invests in GM, Report Says
By Michelle Krebs August 7, 2007China and, to a lesser degree, India have been the hot new players in the auto industry in the past few years. Now it is Russia.
Reuters picked up a story from Russian newspaper Vedomosti today that Russian billionaire Oleg Deripaska, owner of automaker GAZ, has bought about a 5 percent stake in General Motors. He's also been rumored to be making a bid for Ford's Jaguar and Land Rover, though he denies it.
And look for Chrysler to make a deal in Russia soon.
GM's Newest Russian Connection
The Russian newspaper quoted unnamed sources supposedly close to Deripaska who said he bought the GM shares on the open market for a total price of about $900 million. Deripaska is Russia's second richest man with a fortune last estimated by Forbes magazine at $16.8 billion.
Neither he nor GM have commented on the report.
Basic Element, Deripaska's company, agreed in May to invest $1.54 billion in Canadian auto parts supplier Magna International. The move was believed to be part of Magna's failed effort to buy Chrysler.
Chrysler's Russian Connection
Chrysler Vice Chairman and President Tom LaSorda mentioned Russia a number of times during First Day of New Chrysler activities on Monday. His comments suggest a deal in Russia is imminent for Chrysler, which is trying to expand overseas in growing markets.
Other Automakers Deal in Russia
Also this week, Isuzu announced it had finalized a deal in Russia to produce commercial vehicles. Volkswagen just cut a deal in which it begins assembling midsize cars near Moscow this fall. French automaker PSA/Peugeot-Citroen is considering three sites for its plant in central Russia, a governor for the Nizhny Novgorod region told reporters last week.
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