GM to close Russian Plant: The US Car giant General Motors today announced that it is to mothball its plant in St. Petersburg and wind down production of its Opel brand. In a move aimed at cutting its losses in a market where February sales of new cars fell by 38% year-on-year, it also announced that it was to stop assembling Chevrolets at the GAZ plant this year as well. “This decision avoids significant investment into a market that has very challenging long-term prospects….We do not have the appropriate localisation level for important vehicles built in Russia and the market environment does not justify further major investment,” GM President Dan Ammann and Opel Group CEO Karl-Thomas Neumann said in a joint statement.
A subsidiary of South Korea’s LG Corporation has announced it is going to manufacture electric cars in Iran at an existing automotive plant. Under the terms of the agreement, the factory aimed to build up annual production capacity to 60,000 cars by 2023. Work is expected to begin next year.
The announcement come soon after South Korean President Park Geun-hye’s visit to Tehran when the the two countries agreed to treble yearly trade from $6.1bn to $18bn and signed around 60 MoUs and contracts worth over $45.6bn.
Nicolas Maure, the new CEO of Russia’s flagship car manufacturer Avtovaz, took up his post today charged with turning the company’s fortunes around after it reported losses for 2015 of over $1bn amid rising R&D and marketing costs, a falling car market, declining purchasing power and the devaluation of the national currency. The situation got so perilous (more…)ITAR-TASS Read More»
Iran’s car industry should be completely privatised if it is to become a global competitor, President Hassan Rouhani said earlier this week. The Iranian state currently controls roughly half of the automotive sector which is the country’s second-largest industry in Iran after oil, with 700,000 employees. Since sanctions (more…)iran-bn Read More»
After year’s of disinterest, Chinese investment in India looks set to rocket after its largest commercial real estate developer Wanda announced that it was planning to invest $10bn in the north Indian state of Haryana. SIAC Motor, itself the country’s largest car maker, looks ready to follow suit and is poised to buy GM’s facility in Gujarat, with around a further 100 small and medium Chinese enterprises having also pledged (more…)indiatimes Read More»
Troubled Russian automotive manufacturer AvtoVAZ has drawn up plans to lay off 15,000 of its 49,000-strong workforce, according to TLTgorod, in a move that is certain to also have a knock-on effect throughout its supply chain. The company’s Chairman Bo Andersson and Human Resources VP Timur Butov are due to hold talks with Russian Labour Minister Maxim Topilin and Deputy Prime Minister Olga Golodets within the next few days.
The news comes (more…)
Russian auto industry exports: Multinational automotive companies have begun to export cars and car parts manufactured in Russia as the weak rouble brings down production costs, the Deputy Editor of the Vedomosti business magazine Alexander Gubsky said in a radio interview this week.
Gubsky cited China’s Fuyao Glass Industry Group, the world’s second-largest producer of automotive glass, as an example after its CEO Shi Tzyun told a conference this month that his company had started exporting products manufactured at a plant in Russia’s Kaluga region to Germany, Belgium, France and Spain.
Russia’s domestic car market has experienced a sharp slump in demand during the past year with car sales down 36 % year on year.
Uzavtosanoat and GM Uzbekistan are planning to build a new factory, a spokesman for the Uzbek company told the state-run Pravda Vostoka newspaper this week. The two companies want to extend facilities at GM Uzbekistan’s existing plant in order to begin production of new models and of spare parts and components.uzdaily Read More»
Russian automotive market 2014 – PwC
The BRIC markets have the greatest potential for unit sales growth in the next 10 years.
Going forward, the US and EU markets will not be able to demonstrate a similar growth rate as emerging economies; however, they will remain the key markets alongside China.
China is already the largest automotive market in the world, which will continue to expand (in volume) and will be under focus of the car producers’ attention.
The role of Japan, formerly one of the world’s largest markets, will further diminish. Japanese car producers will be increasingly focused on meeting consumer needs in other countries.
Moscow is to increased subsidies for the beleaguered Russian auto industry from RUB10bn to RUB15bn, it announced on Friday, after year-on-year sales of passenger and light commercial cars fell by 37.7% in May. The government also continues to support the industry through subsidies for interest rates on car loans.The Moscow Times Read More»
Mercedes-Benz has suspended plans to build a new car plant in the Russian oblast of Vladimir, the region’s director Sergey Borodin announced today. The German car maker had decided to put its plans on hold because of the sanctions, he said. Discussions over the possibility of building new facilities had been going on since the beginning of the year.
Tests of the unmanned Autorobot vehicle being developed by Kamaz in conjunction with Cognitive Technologies and the VIST Group are under way on a private landfill site near Moscow, the Russian truck manufacturer’s press office confirmed this week. Three levels of automation (more…)Interfax Read More»
Russian car manufacturers AvtoVAZ, GAZ and Kamaz are in talks with Iran about the possibility of opening car plants there now that it looks like sanctions are to be lifted, according to Russia’s Ministry of Economic Development. It is warning, however, that they are not the only ones. (more…)BFM Read More»
Subsidies for Russian car industry: Russia’s Ministry for Trade and Industry today announced that it was to allocate RUB1.5 bn ($26m) to support the struggling domestic car industry, including subsidies aimed at countering the effect of high interest rates that have virtually brought the auto loan market to a halt. Last month, annualised sales fell by 38% (more…)The Moscow Times Read More»
Austria’s Raiffeisenbank is to stop issuing new loans for the purchase of passenger cars and commercial vehicles in Russia. The refinancing of car loans is also to be terminated. “This decision is due to the negative trend in the domestic automobile market, attesting to the extremely low development potential of this business in Russia in the medium term,” (more…)Interfax Read More»