GAZ should see its JV with Fiat come on stream by the end of the year, while PAZ is still looking for an international partner. In our view the two companies are a good exposure to Russian manufacturing industry, and we continue to rate them as a buy. The company has cut its planned 1998 output by 125,000 units to 625,000 vehicles due to a plunge in demand AvtoVAZ will probably manage to reschedule repayment of debts to the budget. The information contained herewith is based on information made available to the public and is for information purposes only. Information sources are deemed reliable by RMG Securities, however RMG Securities abstains from any liabilities determined from the information herewith.
Analysis is based on dated market information and is subject to change.