Russian Auto Industry

kvs wrote:

sepheronx wrote:You guys are so sweet

But yes, KVS, do you happen to know our import laws for automobiles?

http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html

Looks like you are out of luck for new vehicles not manufactured in the USA.   Of course, this regulation
is total BS and designed to secure the market (aka racket) from unwanted competition.    At one stage
the USSR was exporting Ladas to Canada, so Avtovaz possibly could export again, but it likely has to face all sorts
of hurdles that don't make it worthwhile.

This is 100% correct.. Americans Free Market propaganda is completely Bullshit.. that doesn't
exist. They only promote "Free market" in weak countries ,when they have no competition..
But when there is competition ,they create "regulations" so they don't experience competition.
They go to latin america and talk about how they should be free market..and not put obstacles
to their business..      But if anyone wants to Export something to US ,that they feel is strong and damage its own American business ,then they start to regulate.. or asking for special fees and taxes. or simply blockade it.

American "Capitalism" and the "Free market" is a complete lie.. In a real free market with real capitalism..the Government does NOT interfere with private business ,they are free.In United States operates more like a Communist North Korea .  Where the Government interfere a lot in private business and tell them which nations they can invest or not..  and they use sanctions to gain unfair economical advantage. etc. A government that takes away money from people and give it to 100% private companies ? as was 2008? a Government that blockade its own private Business for doing business with Russia under the pretext of sanctions for a conflict they created in Ukraine?  that is not capitalism that is COmmunism ,heavily rigged business economy. .  United States is a communist fascist two party dictatorship nation.  China is a one party dictatorship communist nation with more freedoms than America on its private business. you never heard of China Economic sanctions on any nation. Russia today is much more capitalist
nation than United States. with a more free market.

In positive news.. a new assembly building plant of German cars engines in Russia..

Volkswagen launches $250 mln euro auto engine factory in central Russia



http://tass.ru/en/economy/818947

This is really good news , a really high tech engine factory highly automated with Robots in Russia with all the ins and out.. and hows to do it.. will definitively help Russia expand its knowledge in European Automobile Industry.


In more news.. which one looks better , the car or the blond model?

Russian Truck Makers Boom Thanks to Sanctions, Cheap Ruble

What will happened to the neighbor Belaya Rus ? Since according to the article her automotive company is the one who suffers the most.

higurashihougi wrote:What will happened to the neighbor Belaya Rus ? Since according to the article her automotive company is the one who suffers the most.

Well they've been stubborn on the issue of allowing Russia to have controlling shares in MZKT, and the reality is Russia can't allow itself to be strategically dependent on any company in a foreign country that may be in the future a target of a successful color revolution, so the controlling shares means the patents as well as the production facilities can also be locally produced in Russia. The Kamaz heavy-truck alternatives that are equally as good or even better in quality terms, are even more advantageous with the falling value of the Rouble,.

While I love the MZKT brand of trucks, Russia can't risk strategic dependency on MZKT and their increasingly expensive trucks unless they're willing to guarantee consistent deliveries via a controlling share owned by Russia. Let's hope Belarus govt. and MZKT executives are smart enough to realize that keeping the majority share isn't worth losing the Russian market. They'll end up losing more money in the long run.

There is of course the Chinese and Kazakhstan markets. I imagine they will try to obtain new contracts with other countries (If Russia signs a deal woth Saudi Arabia for Iskanders, then Belarus could produce the launch vehies). They are (Russia and Belarus) are working jointly on a new short range mobile sam system, so my bet is it will be a belarussian made vehicle. There will always be a market in Russia for it of course, and I agree, sell shares of it to Russia and have equal shares.

GAZ group shows off 6 new Gazell Next models
http://sdelanounas.ru/blogs/67381/

sepheronx wrote:There is of course the Chinese and Kazakhstan markets.  I imagine they will try to obtain new contracts with other countries (If Russia signs a deal woth Saudi Arabia for Iskanders, then Belarus could produce the launch vehies).  They are (Russia and Belarus) are working jointly on a new short range mobile sam system, so my bet is it will be a belarussian made vehicle.  There will always be a market in Russia for it of course, and I agree, sell shares of it to Russia and have equal shares.

You can't have a equal share, someone has to have a controlling share, otherwise you'll have problems down the road. The closest thing to a equal share is a 51-49% split.

That is true now days.

I guess 50% + 1 share through either side. Belarus should have control share as it is their company. But I agree, let Kamaz or GAZ buy 49% shares.

sepheronx wrote:GAZ group shows off 6 new Gazell Next models
http://sdelanounas.ru/blogs/67381/

Nice find, +1 sepheronx!!!

I took the liberty of posting some of the pics from your link, hope you don't mind:

The new Ural­ trucks looks as tough and rugged as the Ural mountains...

Thanks for posting the photos. I +1 back for the effort.

Hopefully these Gazelle Next vehicles will revive GAZ group and their civil products, as Kamaz usually dominates the market. This could be good competition.

This should also fall under automotive (and economy):
Sino-Russian plant in Kaluga started exporting components for cars in Europe

So China/Russia co-investments are already paying off.

Sino-Russian plant for the production of automotive glass "Fuyao Glass Rus" in Kaluga began to export products to Europe. This was announced on 8 September CEO Shi Jun, the international forum "Autoevolution" in Kaluga.

"We plan to export its products to other countries, have already begun to do so in Belgium, Germany, France, Spain, so now started to implement the second phase of investment," said CEO of the company.

magnumcromagnon wrote:The new Ural­ trucks looks as tough and rugged as the Ural mountains...

A lot of countries suffer from their automotive offerings being bland.
American trucks are fairly distinctive, Japanese less often. European tend to be more composite material looking. What I like about Russian is that they look super tough and muscular.

On a side pt, I think one of the best brands for Russia potentially is Kamaz. Just look at their Dhakar rally performances. If people knew more about that, they could be a terrific export to the West. Maybe they could eextend to sell 4x4s etc or Humvee type vehicles at some pt?

While the Russian automobile market is down for the year....UAZ has increased sales by 7% throughout 2015

http://www.autostat.ru/news/view/22852/

Two bigger news that seems to not be getting attention when it should (Since it will be a big thing for Russias economy and automotive market):

A new production building of JSC "Magna automotive Rus" was opened in Nizhny Novgorod

and

In Ulyanovsk opened a plant for production of automotive parts

Opening of sites for the production of automotive components is becoming a real thing. A big thing. Localization of parts will help reduce overall costs of the vehicles, while boosting economy due to new jobs and increasing amount of money staying in the country through automotive sales (domestic sales and exports).

Moscow Times can barely contain their frustration and disappointment.        


More Bullish News from Russian Auto Industry Thanks to Cheap Ruble

Global manufacturers have started exporting from Russia due to cost advantages


http://russia-insider.com/en/business/more-bullish-news-russian-auto-industry-thanks-cheap-ruble/ri9676

Check several pages back. Everything is happening as I have foretold!!!  

Hour of my vindication has come!!! (although for the record, everyone here agreed with me back then but still... let's just roll with it...)

sepheronx wrote:In Ulyanovsk opened a plant for production of automotive parts

With a foot hold in Russia, Alfa may gain confidence to invest in other sectors they're involved in, from food processing to chemicals.

GAS driven diesel 4-cylinder engine JAMZ-530 up to the standard "Euro-5"

"GAZ group" represents the inline 4-cylinder diesel engine YAMZ-530 environmental standard "Euro-5" in the International specialized showroom "Commercial Vehicles'2015" (Comtrans'2015). Presented a modification JAMZ-53443 a rated power of 150 HP at 2300 min-1, torque 490 N. m. Engine YAMZ-53443 is designed for installation on a promising medium-duty vehicles "Lawn NEXT".

In the course of 2015 the engine has successfully passed bench and road tested in equipment certified to meet the requirements of Technical regulations of the Customs Union TR CU 018/2011 "On safety of wheeled vehicles" to meet the requirements of environmental class 5, normalized UN Regulations No. 24-03 and 49 V (G).

Structurally, the 4-cylinder engine JAMZ-530 standard "Euro-5" overall, has not changed compared to the previous engine of the standard "Euro-4". To achieve the environmental standard "Euro-5" carried out work on improving workflow, optimization of the cooling system, installed EGR system (EGR), catalytic Converter and fuel injection equipment with high energy injection up to 2000 bar. The composition of the upgraded fuel injection system, Euro-5 includes a new fuel injection pump, developed by specialists of the Yaroslavl factory of diesel equipment "GAZ Group" and is fully adapted to work with the components of the new system Common rail.

Just keeps getting better

The company "Luidor" released pickup on the basis of "GAZon Next"

http://sdelanounas.ru/blogs/67896/

Ulyanovsk Automobile Plant introduced new car body painting technology, which allows the reduction of corrosion on the car by 50%, and decreases the consumption of materials by 35-40%:

In Ulyanovsk Automobile Plant introduced a new technology body painting

"Serial production of Lada Vesta has started"

http://sdelanounas.ru/blogs/68231/

at 11:40am






All hail Bo Inge Andersson!!!

That makes the most sense. While Russia has grown in import substitution and development of new technologies and what not; Russia has lost a ton of money and frankly, lost most in manufacturing PMI and industrial production due to the automotive industry. Russian automotive industry has fallen more than 30% across the board with plants either shutting down production or freezing production or reducing it significantly, with quite a bit of layoffs (in the thousands). And the automotive industry is one of the largest industrial industries in Russia, if not largest next to oil/gas, and defense. It employs roughly 600,000 people and accounted for 2% of the worlds automotive production. I imagine besides construction equipment and heavy industrial equipment, the automotive market must make 10% of Russias industrial production (great rough estimates, if someone can correct me with data).

So such measures are needed. There may need to be many more measures to help the automotive market, especially in exporting.

From RT.

http://www.rt.com/business/317020-ford-trucks-russia-avtotor/

The Avtotor plant in the Russian exclave of Kaliningrad is about to begin assembling Ford trucks. The vehicles will be adapted specifically for the Russian market and comply with European safety standards.

"We are in a pre-production stage of the four most popular models – tow trucks and road construction machinery ... Actual production will depend on market conditions, as well as currency and inflation that have a direct impact on this," Avtotor told RIA Novosti.

The 4,000 parts for each truck will come from Ford’s Otosan plant in Turkey. The complete knocked-down (CKD) assembly technology provides a high percentage of localization. CKD means importing parts to the country where the vehicle will be finally assembled; tariffs for parts are lower than for complete vehicles which makes the end product cheaper. Moreover, all vehicles will be equipped with Russian made options.

Avtotor was founded in 1994 in Kaliningrad. It was the first plant in Russia to assemble foreign cars. Today it produces automobiles for BMW, Kia, Hyundai and Chevrolet. Last year the plant assembled 186,000 cars.

Kaliningrad is an exclave city between Poland and Lithuania on the Baltic Sea. Its proximity to the EU has made it attractive for foreign auto makers to assemble cars there for the Russian market.

The devaluing ruble has also made many producers turn to Russia. In August, the average salary across the country was 31,870 rubles (less than $500 a month), according to the official statistics agency Rosstat. Russian labor is now cheaper than in Romania and China.