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Chery in Russia

29610 Views 56 Replies 26 Participants Last post by  dmitra
Chery Coming to Russia, starting with 200$million plant

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.

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Actually Russian cars are the MOST popular cars is Russia! Because of thier low price. But quality insn't good too. Quality isn't just enough for price/quality proportion. For example IMHO if producers cut the price for 20-30% - everything will be ok! Me and my father was a russian car users for many many years. Car was Lada 2107 - the best seller ever (as in the picture)

In this web-page you can see russian cars in the top of sells. For example - 2005 year, sells of cars of C-class. Look at the prices!!!

Class C
Russina Lada 2105-07 - 239584 items (price is min $4350 - max $5100)
Russian Lada Samara 1—2 - 236715 items (price is $6600 - $7300)
Russian Lada-110 - 197544 items (price is $8150 - $9200)
Mitsubishi Lancer 39195 items (price is $14490 $21050)
Daewoo Nexia 35175 items (price is $8800 $11300)

Here the table with prices in Moscow in February 2006.
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Lada 2105 got to be one of the cheapest cars in the world. $4350 !! Chery QQ is even cheaper though, $2500 in China. But Lada is a classic :D
$2500 for a used QQ? for Chery QQ the cheapest one sells for 38,000RMB in China or about $4,800 US

Nice post. I enjoyed you insights into Russia, which has always been a mystery to me. Sounds like there's quite a bit of problems that won't / can't be fix anytime soon. Sorry to hear that.

Unlike the Chinese people, "unfortunately", Russians can migrate to other Western countries and assimilate (blend in) quickly, which in a sense can fuel the brain/talent drain on Russia. This brain drain must be reversed to have hope for the future.

As recent as 20 years ago, China seems to have no future, but look at where China is headed now. Russia can learn a lot from China and by working closely with China, can benefit greatly too. I hope the 2 countries work together and prosper in unison - suppliment each other's strength and weaknesses.
BringIt said:
Nice post.
But too many typos:D

BringIt said:
As recent as 20 years ago, China seems to have no future, but look at where China is headed now. Russia can learn a lot from China and by working closely with China, can benefit greatly too. I hope the 2 countries work together and prosper in unison - suppliment each other's strength and weaknesses.
Yes, it may happen. There's always room to hope. But necessary measures are not taken. The government's interests conradict tht coutry's ones. So, the Russians should grow pollitically and civilly active, "kill a slave within" how Chekhov once said. Being slaves is in Russian mentality as slavery had existed in Russia for 1000 years and remained as serfdom and totalitarian regime until 1991 when USSR collapsed. Nobody is going to fight for our right and our future except us.
chery tiggo get off-line in russia today!

anyone knows that?
I just caught a glimpse of that title from a chinese newspaper today.
It was 24th of april 2006 in "Autotor" located in Kaliningrad, Russia.
Till the end of 2006 they plan to assemle more than 10000 cars of 2 models (which models I don'n know). Investments are about 5.5 millon $.
thanks a lot vladimir-s!

I come from a china car's website,I need these kind of news and detailed imformations greatly-to reveal the real situations of our exported autos in all other countries, so if any,are all usefull for us.:D
I searched ,but didn't find more information about it
Actually there are 2 Chery assembling lines in Russia.
1) in Novosibirsk city. Now it have big problems, because government didn't give them 25% or so tax discount. Maybe they will slose soon.
2) in Kaliningrad city. It's new project. This 100% will be main assembling line. They hope that in near future it'll be more than just assembling line, but even production of Chery. Of course additional investments needed.
Vladimir-S said:
It was 24th of april 2006 in "Autotor" located in Kaliningrad, Russia. Till the end of 2006 they plan to assemle more than 10000 cars of 2 models (which models I don'n know). Investments are about 5.5 millon $.
New information is available. These 2 models are Chery A15 (Flagcloud) and Chery T11 (Tiggo) . And now they are planning to assemble 3rd model - Chery A21.
Here the pictures (Russian language). Click on small photo in the left side of web-page and you'll get large one! It's Chery presentation near the Chinese embassy in Russia.
Cool pictures. Thanks for the link !
And now they promise new low prices. "Russian" Chery will cost:
- Flagcloud (ABS, airbag, etc.) = $10 500 (was $12 417 for "chinese")
- Tiggo (ABS, EBD, CD, etc.; 2L engine with 125hp) = $14 000 (was $20 000-$22 000 for "chinese").

P.S. I think that real price for Tiggo will be higher - not less than $15 000.
The price for a Tiggo is around 110,000 RMB which roughly equals to 13,500 USD in China.....If they are selling Tiggo around $14,'s like the domestic price...pretty impressive.
It's very interesting is there any 4x4 version of Chery Tiggo in China? And how much does it cost in dollars?
There are very few 4x4 tiggos in China due to limited production. It costs around 130,000~140,000 RMB (13,000~14,000 EURO)
Thanks, Tiggo! :thumb:
Here in Russia 4x4 are much more popular. People are very interested in 4x4 versions of Tiggo.
Compare to Great Wall pickups, 4x4 versions are much more popular, than 4x2, although 4x4 is about $2500 more expensive. There's the same story with Chery Tiggo.
Now there's only rumors about Tiggo 4x4. Everybody's waiting.
Avtotor, Chery to invest $300 mln in building car plant

Avtotor, Chery to invest $300 mln in building car plant in Kaliningrad
MOSCOW. Oct 30 (Interfax) - Avtotor and China's Cherry have determined the main parameters for a project to build a new car plant in Kaliningrad region.

The new plant will have a capacity of 200,000 vehicles a year and investment of $300 million. Most of the vehicles will be exported.

The companies have not yet determined the business plan for the new project and have not signed a final contract, although it has been agreed that total investment in construction will be around $300 million, Vladimir Shcherbakov, chairman of the Avtotor board of directors, told Interfax.

"It's been agreed that the new plant will be established on a parity basis. The issue of who will get a controlling stake is still being discussed," Shcherbakov said.

Three new Chery models are expected to be assembled in Kaliningrad that have not been produced in China yet, he said. These will be a Class A car, a Class D-E model and a seven-seat minivan. The price and name of these models are still to be determined and are a subject of discussion, he said.

Avtotor is planning to work within the law on the special economic zone in Kaliningrad region, Shcherbakov said. The new company will need to receive the status of a resident of the special economic zone. rm
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ST. PETERSBURG. Feb 12 (Interfax) - Kaliningrad carmaker Avtotor and China's Chery may start to build an automobile plant in 2007, Kaliningrad region Economics Minister Felix Lapin told journalists during the Autoinvest-2007 conference in St. Petersburg on Monday.

He said that the car plant with a capacity of 200,000 automobiles per year, would be built in 2009.

The minister said that some of the cars produced at the new plant would be sold on the Russian market.

Lapin said that Avtotor and Chery have not yet decided on a site, and that this would depend on a decision to build a deep-water port.

He said that Avtotor has lost its tax breaks, but that if the joint venture "is registered as the resident of a special economic zone" then it would receive support from the regional administration in the form of subsidies of up to three quarters of the refinance rate per year. rd
They discussing it for years.
Avtotor didn't want to invest money and fine with Chery SKD assembling.
BTW current plant quality is terrible, they even shiped some cars with parts colored different (black and white), many complains about rear glass break at cold weather (common here) and some cars shiped with SRS silently turned off.
If they didn't invest some time in QA new plant is out of question.
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