Top Russian automaker Avtovaz and Canadian auto parts giant Magna on May 18 confirmed plans for a joint venture in southern Russia with an initial production run of 200,000 cars per year.
In December a top Russian official said the two companies were in talks over car factory that would construct the platform for class-C automobiles, which a foreign carmaker would then complete.
Last week Russian metals firm Basic Element agreed to buy a $1.54 billion stake in Magna.
Russia's car market is booming, with the number of cars sold here rising by 20% between 2005 and 2006.
Copyright Agence France-Presse, 2007