Great Wall Motor concluded an agreement with its Russian distributor «Irito» about the supply of the production complex at the cost of $25 million to produce cars. Andrey Matveev, the head of the PR-department of «Irito», said that the partners decided to organize the body’s wielding and painting lines first of all because of the imposition of duties for bodies’ import at the amount of 5,000 euro. Moreover, the local production helps to economize on logistics as the disassembled cars take less room while transporting them. The equipment including the wielding and painting lines as well as an assembly line will be placed at the new site near to the existing assembling manufacture at the Gzhel plant «Electroizolyator». The car production will start in summer 2009. The model line of the enterprise will comprise Hover SUVs и SUVs G5 and one of the class-B sedans, Peri, as well which has already been sold in Russia or the newly-designed product of next year, Florid. At first the plants’ capacity will be about 5,000 cars per year and may be increased depending on demand. According to the dealers’ information the maximum plant capacity is to produce 50,000 cars per year. The RBK daily reminds that earlier Great Wall planned to build a full-featured plant in the special economic zone Alabuga. It was assumed that $100 million would be invested in its establishment and the production volume would constitute 50,000 cars per year. The Chinese pretended to industrial assembly regime and file an application for it in 2007 but it was not granted to them. In result the JV «Great Wall Alabuga Avto» between Great Wall and the Tatarstan government has been recently liquidated. In October the analytical agency «AUTOSTAT» published the marketing report «Car industry of China and its expansion on the Russian market» where there is an attempt to explain the phenomenon of auto industry of the People’s Republic of China and a detailed analysis of promotion of the Chinese automobile brands in Russia.
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