June 11 (Bloomberg) -- OAO AvtoVAZ surged the most in more than seven months after Vedomosti reported Germany’s Eberspaecher GmbH & Co. KG will sell parts to the maker of Lada cars.
The stock jumped as much as 16 percent and traded 11 percent higher at 15.19 rubles as of 3:40 p.m. in Moscow, headed for its biggest gain since November.
AvtoVAZ will form a joint venture with Eberspaecher to produce exhaust systems for its budget Kalina model, Vedomosti reported, citing vice-president Damir Kashapov.
“This is real progress for AvtoVAZ,” Andrey Rozhkov, an equities analyst at Metropol IFC, said by phone. “This deal may improve the car’s quality and demand.”
AvtoVAZ said it plans to increase production by at least 100,000 cars this year from its original forecast to 550,000 units, Chief Executive Officer Igor Komarov told reporters in Paris today.
To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin in London at email@example.com