China Car Forums banner
1 - 20 of 54 Posts

·
Registered
Joined
·
249 Posts
Discussion Starter · #1 ·
Chery Coming to Russia, starting with 200$million plant

http://www.themoscowtimes.com/stories/2006/02/01/043.html

New $200M Car Plant in the Works


By Anna Smolchenko
Staff Writer

David Mcintyre / Bloomberg

Chery QQ model cars, which resemble GM Daewoo's Matiz model, awaiting customers at an auto market in Beijing.


Private car assembly company Avtotor said Tuesday it was building a new $200 million assembly plant in Kaliningrad that will have an annual capacity of 150,000 vehicles.

Avtotor, which assembled over 16,000 cars at its existing plant last year, hopes to put the plant into production from 2007, Avtotor spokesman Vladimir Foshenko said by telephone.

A likely tenant for the new plant is Chinese carmaker Chery, Foshenko said, adding that Chery might also contribute to the cost of the new plant.

The companies' cooperation is likely to start as early as this year, when Avtotor begins making Chery models at its existing plant, he said. Avtotor already assembles models for carmakers including BMW and KIA. A final agreement between the companies will be signed in February, Foshenko said. Chery said the companies were in talks.

News of the new plant coincides with President Vladimir Putin's confirmation Tuesday that Russia was currently negotiating with 14 foreign carmakers to bring car production into the country.

Agreements had already been signed with six of the largest foreign makers, he said, according to information posted on the Kremlin web site. Commenting on a possible new automotive champion, an issue that has attracted a lot of recent media attention, Putin said a merger of AvtoVAZ, KamAZ and GAZ was "possible." The deal would be decided on by the companies' owners, he said. "If all the participants in this process come to the conclusion that such an alliance can help develop the Russian car industry, we will of course support such decisions. But we will not impose any decisions."


He said that state involvement at AvtoVAZ "wasn't bad" taking into consideration the carmaker's poor shape, but added that the state was not taking over the country's car industry.


 

·
Registered
Joined
·
297 Posts
Will Russia be the manufacturing hub of China's Chery?

Chery aims at West from Russia
Kaliningrad plant to make China brand’s models in April
Lyle Frink
Alysha Webb and Alysha Webb
Automotive News / February 20, 2006 - 6:00 am
http://www.autonews.com/apps/pbcs.dll/article?AID=/20060220/SUB/60217093/1078&refsect=

Chinese automaker Chery is still settling details to have its cars made for the Russian market at a Baltic factory. But it already is thinking about shipping its models to western Europe from there.

Contract manufacturing of Chery models from kits is set to start in April at Avtotor’s plant in Kaliningrad.

Chery also expects to produce up to 80,000 vehicles a year for the Russian market starting in mid-2007 when a new assembly line opens at the plant, Zhao Yi, head of Chery’s eastern Europe department, told Automotive News Europe.

“We would eventually like to export to western Europe from Russia – it is very convenient from a logistics standpoint,” said Yi from his office in China. He added: “We have a lot of preparation to do before our cars are ready for the market in western Europe.”

Yi declined to specify which models Chery intends to build in Russia. The contract work will be done at Avtotor’s plant in Kaliningrad, an enclave portion of Russia between Poland and Lithuania.



Booming business
Avtotor has assembled kits for several foreign clients, including General Motors, BMW and Kia, gradually expanding to a current estimated 20,000-unit capacity. It built 16,303 units last year, according to data from market researcher ASM Holding.

Owned by former Russian Deputy Prime Minister Vladimir Scherbakov, Avtotor has ambitions for rapid growth.

Avtotor declined to comment.
Avtotor plans to triple total contract-assembly output to 45,000 units this year for all clients, say Russian press reports citing Avtotor Director Valerie Sokolov.
General Motors will add Korean-sourced kits and boost volume at Avtotor this year. “If you assume that we will be adding to their volume upwards of 15,000 units, you would not be far off,” said a well-placed GM source.
Avtotor also is building a new assembly line with 60,000-unit capacity to open in the first quarter of 2007.
Avtotor plans to start assembly of Admiral pickups for Chinese automaker Zhongxing this year.
Avtotor assembled a trial batch of Nanjing Yuejin pickups last year, although it does not yet have a contract to produce the trucks for sales in Russia.



Kia shifts the Sportage
The growth comes despite Avtotor losing the Kia Sportage in May. Kia is shifting the Sportage to Izh-Avto in Izhevsk, Russia, 1,000km east of Moscow.

Last year Avtotor assembled 11,780 Kias – including old-generation Magentis and Carnival models – ASM Holding said. Avtotor is expected to keep some Kia assembly work.

Some of the new GM cars at Avtotor will be “small and compact” Chevrolets from kits shipped by GM Daewoo Auto and Technology in Korea, the GM source said. The Aveo fits that description.

Avtotor completed a trial batch of GM Daewoo cars in December, says ASM Holding. The new models included the small-segment Aveo, lower-medium Lacetti, large-segment Evanda and the Rezko.

Avtotor has built GM semi-knockdown kits – simple assembly of pre-painted bodies, subassemblies and parts such as wheels and tires. GM will help Avtotor expand welding shop and paint shop capacity to 30,000 to 35,000 units a year after Sportage production ends, Sokolov told Russian newspaper Kommersant.

GM will price and position the new models above the Chevrolet Lanos it sells in Russia for $9,000 (E7,500). Ukrainian automaker ZAZ assembles the Lanos for GM for the Russian market.

– Pal Negyesi contributed
 

·
Registered
Joined
·
8 Posts
Chery to assemble in Russia

Chery is considering car production in Russia late this year if the agreement with Avtotor to be signed. The deal will include arranging spare factory at Avtotor's assembly plant in Kaliningrad and constructing a new car assembly plant in Russia. Total investment is expected to reach $200 million to, with an annual output of 150,000 units by then.
 

·
Registered
Joined
·
198 Posts
Why does Chery choose Russia...interesting.
 

·
Registered
Joined
·
264 Posts
i guess because Russia has a growing economy, cheap costs, and location is close to china, and because there is a market for chinese cars in russia right now..

and russia has higher standard or autos than other asian countries and middle east countries like pakistan,indonesia,mongolia,iran etc
 

·
Registered
Joined
·
68 Posts
Yes!
1) Because chinese manufactures will use Russian market for "jumping" to european market! And now they are testing their standarts, distribution, service, etc...
2) Domestic russian cars (VAZ, GAZ, ...) are getting worse and worse and more expensive and less reliable. They started to use foreign spare parts in russian cars and that made them expensive. Russian people are moving to unexpensive foreign cars. There are many plants in Russia (huyndai, ford, renaut,...). Many russian people think that chinese cars are just "bad quality russian VAZ but with the high price as foreign car"!
3) Some chinese cars have no competition on Russian market in term of price!
It's Great Wall Auto! (ZX Admiral - but less, it has problems with quality and spare parts).
Chery prices is very compatible with huyndai prices or daewoo. So it's less compete. Some people prefer "well-known" Accent than "unknown" Flagcloud (Amulet in Russia).
Tiggo is quite expensive in Russia. And it hasn't 4x4. So it's better to buy Great Wall Hover 4x4 than Tiggo 4x2. Because of winter and many bad roads we prefer 4x4 in Russia.
 

·
Registered
Joined
·
198 Posts
Vladimir-S said:
Yes!
Chery prices is very compatible with huyndai prices or daewoo. So it's less compete. Some people prefer "well-known" Accent than "unknown" Flagcloud (Amulet in Russia).
Tiggo is quite expensive in Russia. And it hasn't 4x4. So it's better to buy Great Wall Hover 4x4 than Tiggo 4x2. Because of winter and many bad roads we prefer 4x4 in Russia.
Thanks for the information! :thumb:

I've heard from Chinese domestic source that Flagcloud in China has recently become very popular, an average of 10,000+ flagclouds are sold monthly in China! it has gained it's reputation as being very reliable and economic in fuel consumption, quite contrary to what it used to be, expecially its reliability, Chery certainly has greatly improved that production line.
 

·
Registered
Joined
·
68 Posts
You're welcome to ask anything - I'll try to answer! :)
I'm not a Chery owner, I'm Great Wall owner. But there are some forums in russia where we discuss chinese cars. Chery is only about 6 month on russian market or so. First users of Flagcloud (Amulet) are very happy. One of them already modified injection system from gasoline to gas!
People want to know about paint of the car. Is there any rust protection? Here in Russia (especially in the big cities like Moscow) roads are in SALT during winter - to prevent them from ice (usually not helps :lol: )
And car-masters say that Flagcloud is very simular to Golf3 in spare parts.
 

·
Registered
Joined
·
198 Posts
:thumb: I hope the Greatwall is treating you decently! =)

I've just checked some Chinese websites, and it says the Flagcloud CVT is painted with Water-soluble electrophoretic paint (could be different 'coz I translated directly from Chinese)

I don't think people in Russia should worry about the car's paint because you know in Southern or Southeastern China the weather is much more humid than that in Europe, say the air in Moscow or Paris is like at least three times drier than that in Shanghai. If Chery can survive in south China's rain season with no problem, there's nothing to worry about.

One thing interests me a lot is that in Paris a lot people leave their paint-damaged cars unattended which is almost never the case in southeastern China where people will immediately fix their paint in case of apperance damage which would easily lead to rust....I guess this is also because of climate differences!
 

·
Registered
Joined
·
68 Posts
Tiggo said:
I've just checked some Chinese websites, and it says the Flagcloud CVT is painted with Water-soluble electrophoretic paint (could be different 'coz I translated directly from Chinese)
....
One thing interests me a lot is that in Paris a lot people leave their paint-damaged cars unattended which is almost never the case in southeastern China where people will immediately fix their paint in case of apperance damage which would easily lead to rust....I guess this is also because of climate differences!
Thanks! :) Russian people like zinc under the paint of car!
Here in Moscow people usually start to fix their paint immediately too. Only if there is zinc under the paint - some people don't do it! And usually we make anti-corrosion covering on our cars. There are many talks - to do anti-corrosion on foreign car or not :) Most people do. Me too.
 

·
Registered
Joined
·
772 Posts
I've heard from Chinese domestic source that Flagcloud in China has recently become very popular, an average of 10,000+ flagclouds are sold monthly in China!
You heard wrong. Flagcloud is not even on the best seller radar. Chery is pretty much a QQ company. QQ sinks and Chery dies.
 

·
Registered
Joined
·
68 Posts
hazik said:
Here are pics of people in Russia driving Chery cars
It's just pictures from one of the magazines. I know them.
Here the instuction how to install anti-noise on Chery Flagcloud doors - by russians. Disasseble/assemble door:
Caution - many large pictures, russian language:
http://www.chinamobil.ru/bb/viewtopic.php?t=1043
 

·
Registered
Joined
·
9 Posts
Still chinese cars are rare birds in Russia. There are a lot of forein models, though I've never seen a single chery or geely. Russian cars are terrible:( , that's why Russian market seems so lucrative to the chinese automakers.
 

·
Registered
Joined
·
126 Posts
Could anyone explain to me why Russian cars are getting worse in quality like some of you mentioned? As a real fan of Russian planes, I once flew with Aeroflot just for a personnal approach to the well known Ilyushin-96, although it was finally a Il-86 that I had. I understand if you say Russian cars are less stylish or less economic in consumption for maybe some historical reasons. But why they are getting worse? A great country like Russia who gave birth to such great airliners as Tupolev and Ilyushin should have 1000 reasons to build great cars!
 

·
Registered
Joined
·
9 Posts
Yes, there hundreds of reasons to make good cars in Russia but none works. Russian leadership in aerospace industry is the result of long and extensive state-sponsored program aimed at creation of the world's best weapons. Being involved in the Cold War in 1946 (Churchill's famous "iron curtain" speech at Fulton), SU directed all its material and intellectual resources to the preparation to the outright conflict and development of the most advanced weapons.

The totalitarian government system without any considrable concern for civil rigts and absolutely free and very available demioratic education system provided the communist leaders with wonderful, effective and cheap managing instruments with which they easily prepared and aggregated the best and very talented technical specialists at numerous state-controlled R&D bureaus. Tupolev and Ilyushin are the two of hundreds similar R&D bureaus. They all researched and developed weapons and military technologies. Consumer industries in Cold War years were undersubsidized. Passenger vehicles are consumer goods. SU was a huge defense factory. By preparing to war USSR has managed to maintain peace and keep the world fom bursting into WW III and...ruin the soviet consumer industries.

Nowdays there almost no consumer goods in Russia that can successfully compete in the world markets. Russia is not a great country any more. It's a huge resourse supplier with dwindling population and very tempting vast, rich in minerals territories. Originally the Soviet economy was far less effective and weaker than the USA's one. Having engaged into the uneven fight the SU lost it by making the eventually wrong bet at war, not peace. As a result by mid 1980-s SU could produce hords of weapons and military machines, while suffering from severe deficit of consumer goods. A simple TVset or furniture, even meat and sugar and other foods were rare things during the last days of the "Empire of Evil". There's even a joke in Russia. Whatever we try to manufacture, the result is always a tank!

During Gorbachov's perestroika, a shy and late attempt of reforms in already corrupted SU, there was the program called "Conversion". The idea was to convetrt the military factories to consomer goods production by implementing the most advanced defence technologies in consumer goods. But the attempt failed. It's difficult to say what the reasons were, but the result is awsome. Many mlitary factories started producing consumer goods of very poor quality, failed to compete and turened bankrupt. Nowdays there are ruins instesd of them. They are being looted by hungry Russian jobless population. Hi-tech equipment is sold as scrab to metal-hangry booming china. Even bricks of the factory buildings are being looted.

Maybe, conversion was too difficult to put into effect. Nowadays there are no universities and technical colleges in Russia,where one can be decently taught how to make cars. Actually there has never been. Planes, missiles. tanks - yes, easily. Cars - no, yawning lack of knowledge and expereince.

Moreover, for the 15 years of non-communuist Russia the education system has suffered a crushing blow from underfinancing. Best university professors and scientist have braindrained from humiliating low wages to the West. So do the best students. Many talanted school graduates cannot afford to study at best Moscow, St. Petersburg and Novosibirsk universities. Scholarships and parents' wages are so low that simple coming to Moscow by train is a serious test for a family budget. Another problem is university bribary. One can not enter a prestegious university without bribing underpaid professors. When studying exam marks can be also easily bought. Professoinal non-university techical education is even in a worse state. Polytech graduates as high skilled blue-collars are necessary now for any modern machinery and electronic production. Even engineers can be invited from abroad, but high-qualified labour force must be home-grown.

The most sad thing about this is that I don't see any signs of improvement. Only deterioration of Russia year by year. How can one count on a good Russia-made car. How I do love to see "Made in Russia" inscription, but none. Only "Made in China". I'm envious to the Chinese who have hope and faith in the future. There are no things made in Russia now. It's impossible to scribble "Made in Russia" upon Oil tanks, because oil is pumped out of Russia, not made. Russia is loosing its best population. Most talnted and educated people are leaving their indifferent motherland for good. There smart children will speak Russian with English, German, French and Japanese accent, if they speak at all and they will never consider Russia their motherland. Russain genepool is losing quality. I have several really smart university friends, who have left Russia to USA and Germany. Population is dying out slowly as very few couples want to have more than one kid. Many don't want to have children at all.

Ironically, the T-90 tank engine is a technical masterpiece, which can use any fuel from diesel and gasoline to spirit and natural gas. The Russian recently developed military SUV, Hammer analogue, called "Tiger" has obvious technical advantages over the NATO machine. But who needs it. No one is going to maneuvre a trucksize gas-gluttonous monster amid city traffic jams. The military all over the world prefer to buy Russian airplanes, missiles and tanks. Automotive industry in Russia as Russia itself is doomed to the prolonged and disgraceful end.

Sorry for troubling with my thinking about Russia. Wanted to share my woes.
 
1 - 20 of 54 Posts
Top