Posts Tagged ‘russia news’

Allure of Russia Drawing New Investment

Automakers betting on Russian rebound.

by on Oct.09, 2017

Russian President Vladimir Putin, center, listens as Nissan executives discuss plans to add 450 workers to its St. Petersburg plant.

The promise of a modest recovery in the Russian auto market continues to preoccupy car makers in emerging Europe, which are stepping up production and introducing new models to establish a strong position as the market recovers, according to a new analysis from BMI Research.

BMI, a division of the Fitch Group, said in a new analysis that automakers appear to be positioning themselves to capitalize on this with Russia accounting for 16 of the 22 investment projects announced in Emerging European markets – Turkey, Belarus, Czech Republic and Romania – during the third quarter.

Industry News!

Ukraine, where the western-leaning government has been caught up in continuing strife with Russia, attracted only one relatively small automotive-oriented investment even though it is considered one of the most industrialized countries in Eastern Europe.  (more…)

Rubles for Clunkers

Russia struggles to revive its own auto market.

by on Mar.10, 2010

Sales have been slow at showrooms, like Moscow's Major mega-dealer, with a quick turnaround considered unlikely.

What was once among the world’s fastest-growing car markets has struggled to avert disaster in recent months.  Now, Russian authorities hope to turn things around by borrowing an idea that’s worked in a number of other markets, including the U.S., throwing money at it.

The Russian version dwarfs America’s Cash for Clunkers program, however, and could eventually involve the investment of $20 billion over a 10-year period, with an initial $6 billion meant to yank the market out of its deep recession.

As in the U.S., that money will be used to stilulate demand for new vehicles – which plunged 49% last year – and to get off the road as many of Russia’s smoke-belching Ladas and Vazs as possible.  But some of the money will also be used to train workers and to prop up the struggling home automaker, AvtoVaz, which still holds a 30% share of the market.

Global News!

“Our end goal is to build a modern auto industry in Russia, including the entire production chain — from the steel sheet to the end product,” Prime Minister Vladimir Putin said, in a statement quoted by the Detroit Free Press.