by Zou
In alignment to circumvent the principle of the Russian market doubt, Chery has made it clear for the Russian market the strategic migration design - Russia’s close by Belarus in the assembly and construct of engine vehicles, directed at the assembly in Belarus after the trade items to Russia.
According to localized newspapers accounts of Russia, Belarus Chery tasks initially designed in April this year, former to finalizing the task are the major contents of automobile manufacturer in Minsk, Belarus set up marking, welding and decorating lines, the whole method of China’s Chery Automobile assembly.
Chery close to the development said that Chery has all the training work to do a good job and is awaiting the commendation of the Government of Belarus, the principle businesses are preferential evaluates and policies.
In detail, because of the high-level vigilance to the Government of Belarus, the task somewhat unsure prospects. Moreover, in agreement with the Russia and CIS nations marked a free trade affirmation, assemble Chery vehicles in Belarus, as long as the localized output of more than 50%, can be exported to Russia.
Russian expert, told reporters Moscow University Roland, Chery projects in Belarus with the model the significance of road open as soon as this will not only attack the Russian Chery are a good way, and will have more selection in the Chinese car prices Russia surrounding the set up assembly plants in the Commonwealth of Independent States.
“Escape” from the Russian
At present, very depressed, and the entire Russian market.
Russian Industry Minister Viktor Khristenko said that Russia in 2009 the every part of past files of the automobile development will face on the inferior year for motor vehicle sales is looked frontwards to to descent more than 60%. The Russian government in December last year when 40 out of 100 looked frontwards to to decrease. Downturn in the market in order that enterprises in the Russian capital the restricted flexible chain of bonds is virtually broken and vulnerable. Russian Volga motor vehicle plant’s greatest seller - British克姆拉达Corporation (who) has freshly resolved bankruptcy.
March 30, Russian Prime Minister Putin of Russia devoted to the rescue of four major state-owned automobile plant meeting, Russian Deputy Prime Minister, relevant ministers, as well as the four major state-owned enterprises and Russia - the Volga, Gorky, Kamaz, Sollers’s person in charge of all present, the enormous and unprecedented scale. Russian Prime Minister Vladimir Putin on Russia’s largest car manufacturer AvtoVAZ management of manufacturing companies and workers that the company and other difference is that the Volga automobile manufacturing company did not lay-offs, but this is a costly score.
At the meeting on the long ago, the Russian government has decided to an additional 10 billion rubles of domestic commercial vehicle for government procurement program, enormous efforts. “Russian local enterprises enormous gaps in funding, the Russian Government’s intention is very obvious, is to support local enterprises.” Rowland told reporters, “and these companies are just the Chinese car rivals.”
At present, all of the Russian government did not liberate parcel realized, earlier ushered in last year has been arranged for March 24 against the implementation of population pay for 350,000 Russian rubles preferential advances for the following types, up to now has not eventuated .
“In Russia, the guidelines ushered in by the Government in six months do not have to realize it are regular, restricted government and bank statements do not pay for the life menacing obstacle in Russia, if the preferential advances in June this year can not be brought out, the every part of Russian Auto markets will face very large difficulties. “Roland said.
Russian agencies in harmony with the guess, the earlier two months, year-on-year descent in the Russian automobile use up to 40% after the March sales will decline 50%, in 2009 a diminish in the complete market will arrive at a least 35% -40%.
Not only that, but the doubt of the Russian market still has farther aggravated the starting of the year start to apply designs to halt in September of imported vehicles increased tariff principle has proceeded implementation of the present signs. Tariffs on imported vehicles is not only a assault to Chinese trades of vehicles, but furthermore the major reason is to battle a large influx of Japanese utilised vehicles in Russia. Data display that the first two months of this year, the Japanese utilised vehicles into Russia is nearly stagnant. In supplement, imported vehicles for the more tough security and ecological measures are brewing, the present public note is that Russia in 2010 to apply the European IV emission standards.
Russia is a high risk financial endeavour market has become an agreed to item, even by the Russian government greeted the cross-border capital financial endeavour in Russia very very carefully, principally the Japanese auto financial gatherings, for instance, after the Toyota-owned production vegetation in Russia only in 100 million U.S. dollars, which the world at large Toyota apparent contrast.
Policy to bypass the doubt of Chery are one of the causes he moved to Belarus, and new partnerships with the Russian co-operation does not effectively TagAZ Chery furthermore has to face.
Depressed because of market situation, the two edges did not recognize the initial investment. At present, TagAZ grave topic of funding string of connections, as asserted by Russian newspapers accounts, the vegetation has been was obliged the bank 6.0 billion Russian rubles southwest of the Russian foreign trade bank, as well as 6.5 billion rubles.
Because of money shortages, the vegetation or even the identical supplier only, vendor of “barter”, bonds, portions, gear, items can be utilised for settlement. Because of the need of auto components suppliers, TagAZ start output in February from the present output has not completely recovered. Chery and give the method of assembly, TagAZ furthermore impelling their own emblem of vehicle C-100, this vehicle fittings imported from Korea.
Chery assert not to stop the Russian market, with the individual as saying “the Board will arrive out will be very difficult.” Last year, Chery terminals in Russia of 1.2 million flats traded this year, the identical objective in Russia is the smallest base line. Chery is actually the aim of the work is firm self-assurance in the vendor in Russia, and in trading efforts.
Roland believes that Chery assembled in Russia want to draw the lessons of the project, in the hands of the production control of Belarus. It is understood that the Chery projects in Belarus are of great importance to the Government, Belarus Deputy Prime Minister to personally intervene. “China’s car prices have suffered setbacks in Russia, an important reason for this is that did not receive the support of the Russian government, and Toyota, GM and other multinational corporations are just the opposite.”
Of course, the fundamental reason is the benefits, Belarus national production has only a few hundreds of passenger vehicles, passenger cars and annual sales reached nearly 25,000, that is to say Chery to enter Belarus would not impact on the formation of local brands, and will be added beneficial.
The industry believes that there is also different from the Russian government anxious to protect the local car manufacturers, Belarus began in 2006 to set up joint venture production of Iran’s car, there should be no domestic car companies are lobbying to put pressure on the Government policies often cause automobile industry adjustment.
Belarus are a very significant colleague of Russia, which exactly engages the political and security of Russia, encompassing Belarus, the CIS nations and Russia have marked a free trade affirmation, except for certain products, the rudimentary trade tariff to zero. Roland said that Chery As for future tasks in Belarus, the key counts on the Government of Belarus and the Russian government commitment.
Specific to motor vehicles, Chery familiar with the relevant people in Belarus, told reporters, Chery plant in Belarus is changeable in order to circumvent the policy of the Russian risk, in accordance with the country’s two free trade agreements, as long as the local production of Chery in Belarus 50% , you can export the Russian.
From the sales of the first two months of this year, the Chinese car was almost completely annihilated in Russia, which also includes one of the growth in 2008 of the Great Wall and other Chinese car prices, from this perspective, Chery is a selection of Belarus was no choice but to force, but once this road of Belarus had a go, will give a great impetus to China’s car prices example, in order to keep the Russian market, Chinese enterprises will be more selection in the assembly and manufacture of the Commonwealth of Independent States.
About the Author:
href=” http://www.ledautomotivebulb.com/sell/led_automotive_bulbs.html”>led automotive