VW Seeking a Stake in Russian Truckmaker GAZ?

Volkswagen AG is discussing plans to acquire an unspecified stake in OAO GAZ, the Russian maker of light commercial vehicles, multiple sources tell Reuters.

The talks have developed out of a letter of intent the two companies signed in June to study long-term collaboration in the production of commercial vehicles and their components.

VW currently has no truckmaking ally in Russia, where car and light truck sales have revived after a four-year slump. One of Reuters’ sources says Russian business tycoon Oleg Deripaska, who owns a piece of GAZ through the Basic Element group, is looking for a partner in the truck sector.

VW and GAZ have been collaborating to make cars in Russia since 2011. The duo produces Skoda and VW brand models at GAZ’s Gorky plant in Nizhny Novgorod. This summer the partners agreed to extend that nonequity pact to 2025. VW also supplies GAZ with German-built 2.0-liter diesel engines under the deal.