Tubbydev

Are Foreigner Automakers Headed For Russia? (source RENCAP)

German Gref, Minister of Trade and Economic Development, said yesterday that four foreign (German and Japanese) automakers are in negotiations to set up assembly lines in Russia in the next two years. According to Mr Gref, at least two of the automakers plan to set up operations in Russia this year. However, he did not specify the names of the companies. If that is true, we think that one of the companies could be Opel, which, as a subsidiary of General Motors, will assemble Opal Astras in Russia under its GM-AvtoVaz joint venture. Other automakers possibly involved in the talks could be Volkswagen, Nissan and Toyota.

Sales of new imported foreign cars are currently booming. In 2003, 32,742 foreign brand cars were assembled in Russia (excluding 25,235 Chevy Nivas). We estimate that roughly 400,000 foreign brand cars will be assembled in Russia by 2010.