On April 3, 2002, at the Russian Ministry of Economic Development and Trade, UAZ (Uliyanovsk Automotive Plant) top managers and Italian company De Tomaso Modena S.p.A" signed an agreement on cooperation. This document was signed in the presence of German Gref, Russian Minister of Economic Development and Trade, and Julio Tremonti, Minister of Economy of Italy. It envisages assembling of UAZ 3160 in Italy.
   UAZ, a Severstal subsidiary, and Italian company De Tomaso Modena S.p.A began negotiations in May 1999. In three months parties signed an agreement on technical and commercial cooperation. The Italian company agreed to be responsible for upgrading UAZ 3160 for sales in Western Europe. This will involve installation of VM 425 LTRU and Iveco engines with spray type fuel supply, which meet the Euro-3 standard. In exchange for that UAZ will give its Italian partners the right to sales of upgraded UAZ vehicles in Italy, Greece, France, Portugal and Spain.
   Today UAZ 3160 passed all tests in the M-1 category (passenger cars), necessary to enter the European market. It passed the last 'crush' test on March 20, 2002.
   At first, UAZ will be assembled at the De Tamaso production facilities in the city of Modena. The first batch of 200 units will be produced in the fourth quarter of this year. In a year, the output will grow to 1,350 units. In two years, production of the off road vehicles will move to the south of Italy to the city Cutro (Krotone province), where the new UAZ- Europe plant will be built. De Tomaso Modena S.p.A has already received a loan for the construction of the plant, but it hasn't been used till signing of the Russia-Italian agreement today.
   The plant's planned production capacity is 20,000 of cars a year. In 2004, the output will reach 3,000 cars, in 2005 - 5,450, in 2006 - 10,000 cars. After that the output will continue to grow to reach the maximum production level. The sales will reach Euro 350 million.
   According to German Gref, the Russian Minister of Economic Development and Trade, the Russian government will offer every kind of support to this unique project.
   The Russian and Italian parties are confident that the project will be successful. Car makers' confidence is based on the lack of competition in Europe in this vehicle group. In spite of high level of driver comfort, large size and superior cross country ability, the vehicle's price is Euro 16,000. The low price of UAZ 3160 is accounted by the fact that the entire car with the exception of its engine is made in Russia.