New Chevrolet Niva - on the conveyor with state aid
"GM-AvtoVAZ" (a joint venture of the American General Motors and Avtovaz) can receive state guarantees for the implementation of the project to produce the next-generation Chevrolet Niva SUV. Minpromtorg Russia, having familiarized itself with the details of the investment project, found it possible to support the provision of state guarantee support for its implementation.
The documents indicate that the potential creditor of the joint venture AvtoVAZ and GM may be Sberbank. The total cost of the project is 21.57 billion rubles, while a third - own funds "GM-AvtoVAZ" (6.57 billion rubles.), 70% - loans to banks (15 billion rubles.). The amount of state support required is 10 billion rubles, "which does not exceed 75% of the total cost of the project," and state guarantees will provide "no more than 50%" of loans for the project. In particular, the amount of capital expenditures is 18.644 billion rubles, capitalized interest - 2.914 billion rubles.
Minpromtorg considered the financial indicators of the project as "acceptable". The payback period of the project is 5.8 years, the discounted payback period is 7.6 years, the additional personnel is 800 people.
It is assumed that the project will include its own welding bodywork (700 additional jobs and the preservation of more than 1200 operating jobs in the main production). The beginning of series production is scheduled for January 2019. The new project should help the company bring the market share in the SUV segment to 6%. Profitability for operating profit is assumed at 12%, an increase in exports - up to 10%, localization - at least 80% of revenue.