TU-TESL

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U.S. auto giant General Motors is said to be shutting down its auto assembly business in Russia. On December 9, local time, AvtoVAZ, Russia's largest carmaker, will buy 50% of its joint venture with GM, and GM's auto assembly business in Russia will stop, Reuters reported. Reuters said Volga did not disclose the amount of the deal. According to the agreement, for a certain period of time, the joint venture factory between Volga and GM will continue to produce GM's brand cars, and then the factory will turn to produce Volga's LADA brand cars. According to public information, Volga automobile is known as "the pride of the Soviet automobile industry" and exported to 75 countries including China. Russia's President Vladimir Putin's beloved old car is Volga's 1956 model car. In 2005, when the president of the United States visited Russia, he was invited to take a ride in this car. In 1970s and 1980s, Vodka's LADA car was also a brand of Beijing Taxi special purpose vehicle, which was also publicized by Putin platform. Volga's joint venture with GM was built in 2001, with an annual capacity of 100000 vehicles, to produce GM's Chevrolet. Before 2014, Russia was the largest automotive market in Europe. Subsequently, with the fall of oil price and the devaluation of ruble, the desire of Russian people to buy cars was greatly reduced, and the recovery degree was also lower than expected. Russia's auto market is in trouble in 2019, with new car sales in November down 6.4% year-on-year, AEB said on Thursday. It is worth mentioning that as early as March this year, the second U.S. automaker issued a statement saying that it would close two automobile assembly plants and one plant in Russia, the production of passenger cars would stop at the end of June, and it would officially withdraw from the Russian passenger car market. Ford stressed that the move is part of a global restructuring aimed at expanding its leading position in the commercial vehicle sector, when sollers, the joint venture partner, will take over 51 per cent of the joint venture.