Nizhnii Novgorod-based car giant GAZ, has ended negotiations with suppliers of Italian Fiat and other foreign companies, to establish a car component production venture for Nizhegorod Motors and GAZ in Russia.

GAZ Technical Director Alexei Kisilev said the project is no longer a priority because of Fiat's decision to postpone the setting up of full production at Nizhegorod Motors.

He also blamed the foreign companies' reluctance to invest in Russia. With foreign participation, GAZ had planned to set up 15 to 20 production units in Russia, which would supply 50 percent of car components for Nizhegorod Motors. Currently only American Lear have a seat producing facility, using floor space rented from GAZ.