&host=rt.com&uri=/business/news/russia-car-market-show/&via=(none)&ua=CCBot/1.0 (+http://www.commoncrawl.org/bot.html))
Russian auto industry under threat by foreign carmakers
Published: 01 September, 2010, 11:55
Edited: 16 October, 2010, 14:08
TAGS: Markets, Russia and the global economy, Big deal, Finance
Foreign carmakers at the Moscow International Motor Show have tipped Russia to drive their sales out of the economic downturn. However, observers warn success will come at the expense of domestic brands.
Car giant Gaz showed off the models it hopes will kick start sales this year, though they are presenting no cars – only vans – for the first time ever.
However, Autostat called its main car, the Siber, “unfortunate”, with January-June sales scraping just one thousand.
Amid reports Siber’s production line will be turned over to Mercedes, GM or Tata cars, Bo Anderson, President at GAZ, saying he is now banking on these Gazelles.
“My first focus is to make sure the Gazelles are successful. Between now and the end of the year, total Gazelle sales will be around 75,000.”
Russia’s largest automaker Avtovaz is gearing up to make cars for Renault and Nissan. Top analyst Elena Sakhnova told RT this marks the beginning of the end for the clunky Lada brand, leading to its giant Togliatti plant making only foreign models. François Goupil de Bouille, Nissan’s Russian CEO, says his company is betting on a spurt in its own sales in Russia.
“We will sell on our fiscal year to March 100,000 cars, which is more or less twice as much as we had before, thus increasing the market share. It's a lot of satisfaction for us.”
For the first time last month, foreign cars in Russia outsold the domestic market. Even though Russia will overtake Germany as Europe’s largest car market as early as next year, the lion’s share of that is still destined for foreign cars.
Without radical redesign, analysts think the domestic carmakers could be facing extinction.
31.08.2010, 16:29
Integra posts 1H 2010 $30.4 million net lossRussian oilfield services provider Integra has posted a 1H 2010 net loss of $30.4 million under IFRS. |
01.09.2010, 13:08
Pharmstandard posts 1H 2010 Net Profit of 2.8 billion roublesLeading Russian drug maker Pharmstandard has posted a 1H 2010 net profit of 2.8 billion roubles under IFRS. |
Spáin´s SEAT was bought by VW and it has survived. Cezch´s SKODA was bought by VW and it survived. NISSAN was bought by REANULT and it survived...so probably AUTOVAZ will be bought by RENAULT (which already hold over 20% of Autovaz´s shares) or by other carmakers which have the necessary technology and World size. What is important is that car production in Russia reaches over 3 million cars a year, something similar to Brazil, South Korea or Spain. That means doubling the present car manufacturing in the Russian Federation during the next five years.
I am not impressed with Avtovaz's new car and the Sibir is just an old American design rebranded and assembled here. Russia needs to build a quality car in the 20.000$ range and have it be worth its value in quality. Why? Russians are demanding more luxury and Western vehicles are delivering. Avtovaz sells a Kalina sport for almost the same price as a similar looking Ford Fiesta. When you sit inside both cars, the interior of the Ford is much more comfortable and extravagant. What choice do you think a consumer will make? Avtovaz needs to consider this and make not only cheap models, but ones that match the modern competition.
Make cars at American standards and sell them in America(we'll buy anything that's different or new)at American prices,and use the income from that to upgrade cars made in and for Russia.If it had quality,I'd buy a car with a Russian brand just to be different.