Russian car marker OAO AvtoVAZ (AVAZ.RS) has proposed that General Motors (GM) sell its stake in their joint venture, the company's Chief Executive Boris Alyeshin said Thursday.

The joint venture assembles a small sport-utility vehicle, the Chevrolet Niva, in AvtoVAZ's home city of Togliatti, and last year sold 47,000 cars.

Alyeshin told Russian news agency Interfax that AvtoVAZ asked GM to name a price for its stake in the venture before June 25. The CEO said that GM has failed to answer, and that AvtoVAZ "will soon prepare a short official directive on the issue".

An AvtoVAZ spokesman confirmed Alyeshin's statement, but declined to give details of the directive or comment further.

General Motors also declined to say whether it has received a proposal from AvtoVAZ.

The plant where the Niva is assembled is one of GM's most profitable plants, and the company last year said it had no plans to sell its 41.6% stake.

AvtoVAZ also owns 41.6% of the venture, and the European Bank of Reconstruction and Development owns the rest.

AvtoVAZ has struggled to finance its own operations this year, and halted production lines early in the year as it sold off the stock of cars which accumulated last year after Russian demand for cars collapsed.

If AvtoVAZ does buy GM's stake it may annoy auto-parts supplier Magna International Inc.(MG.A.T), which is hoping to take a stake as part of its deal to take over Adam Opel GmbH, GM's European business.

Company Web site: www.avtovaz.ru

-By Will Bland, Dow Jones Newswires; +7 495 937 8445; william.bland@dowjones.com