Governments of different countries give loans to auto manufacturers this year to support their work and stop serious unemployment. Russian authorities also want to help the major automaker, GAZ Group, to rise from heavy debts. The government gives $180.2 million to build a diesel engine plant in Yaroslavl, 155 miles northeast from Moscow.

The first-of-a-kind in Russia plant will assemble 4.0 to 6.6-liter engines which are considered to be medium size for diesel motors. Many of them will be used for GAZ passenger buses and trucks such as Valdai, Gazon, Ural and Tiger.

The Yaroslavl plant will also make engines for heavy-duty construction machinery and equipment. About 40% of all motors will be sold to the companies that build large tractors and harvesters.

It will take about six months to build the facility which is projected to assemble 100,000 engines annually. The plant is going to start work in the first quarter of 2010.

At the moment GAZ owes $1.35 billion to several lenders, the biggest one of which is state-controlled Sberbank. In the effort to help the company Russian government has already promised $642 million in loans for the restructuring and arranging the assets in a more profitable way.