Dec. 4 (Bloomberg) -- General Motors Corp. is pursuing a ``significant'' stake in Russia's biggest automaker, OAO AvtoVAZ, as it seeks to expand outside North America, where sales and profit are stagnant.

GM is ``in the bidding process'' for a portion of AvtoVAZ, said spokeswoman Melisa Tezanos in an interview. She declined to say how much GM offered or what percentage of the company GM is seeking. The Togliatti-based automaker has said it wants a foreign partner to develop new vehicles.

The move would bolster GM's presence in a market that's drawing attention from foreign automakers. Detroit-based GM already builds Chevrolet Niva sport-utility vehicles and Chevrolet Viva sedans under a joint venture in Togliatti with AvtoVAZ.

``Russia is a significant market,'' said Michael Robinet, an analyst at CSM Worldwide Inc. in Northville, Michigan. ``GM can parlay their strength in Europe and move it easily to Russia.''

GM's sales grew 75 percent in Russia during the third quarter while declining 6 percent in North America. The increase helped GM regain its title as the world's largest automaker from Japan's Toyota Motor Corp. after losing it for the first half.

North American auto operations remained unprofitable as GM posted a record $39 billion loss for the third quarter. Most of the loss was due to accounting changes.

GM's bid for a stake in AvtoVAZ was reported earlier today by the Wall Street Journal.

Opportunity

Tezanos said a stake in AvtoVAZ would help GM ``pursue growth opportunities'' in the Russian market, without providing specifics. AvtoVAZ's Lada and Zhiguli brand vehicles compete with GM in Russia.

Sergei Chemezov, the head of Rosoboronexport, which controls AvtoVAZ, said Sept. 26 that the automaker may sell 25 percent to outside investors. AvtoVAZ signed an agreement last month to develop engines and components with Italy's Fiat SpA.

AvtoVAZ also may consider a partnership with France's Renault SA or Canada's Magna International Inc., Chmezov said at the time. He said the automaker may make a decision by the end of this year. AvtoVAZ built 966,380 cars and car kits last year.

GM is also building a plant near St. Petersburg that is scheduled to start building Chevrolet Captiva SUVs and other models next year.

GM fell 93 cents to $27.68 at 4:04 p.m. in New York Stock Exchange composite trading.

To contact the reporter on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net

Last Updated: December 4, 2007 16:34 EST