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Wednesday, April 15, 2009

Curve to avert the risk of departing into Russia and Belarus Chery

By bulb.

In rank to circumvent the guideline of the Russian market indecision, Chery has made it clear for the Russian market the strategic migration arrange - Russia's nearby Belarus in the assembly and fabricate of drive vehicles, focused at the assembly in Belarus after the trade overseas to Russia.

According to localized newspapers accounts of Russia, Belarus Chery tasks initially designed in April this year, former to finalizing the task are the major contents of automobile manufacturer in Minsk, Belarus set up marking, welding and decorating lines, the whole method of China's Chery Automobile assembly.

Chery close to the development said that Chery has all the training work to do a good job and is awaiting the commendation of the Government of Belarus, the principle businesses are preferential evaluates and policies.

In detail, because of the high-level vigilance to the Government of Belarus, the task somewhat unsure prospects. Moreover, in agreement with the Russia and CIS nations marked a free trade affirmation, assemble Chery vehicles in Belarus, as long as the localized output of more than 50%, can be exported to Russia.

Russian expert, told reporters Moscow University Roland, Chery projects in Belarus with the model the significance of road open as soon as this will not only attack the Russian Chery are a good way, and will have more selection in the Chinese car prices Russia surrounding the set up assembly plants in the Commonwealth of Independent States.

"Escape" from the Russian

At present, very depressed, and the entire Russian market.

Russian Industry Minister Viktor Khristenko said that Russia in 2009 the every part of past files of the automobile development will face on the inferior year for motor vehicle sales is looked frontwards to to descent more than 60%. The Russian government in December last year when 40 out of 100 looked frontwards to to decrease. Downturn in the market in order that enterprises in the Russian capital the restricted flexible chain of bonds is virtually broken and vulnerable. Russian Volga motor vehicle plant's greatest seller - British克姆拉达Corporation (who) has freshly resolved bankruptcy.

March 30, Russian Prime Minister Putin of Russia devoted to the rescue of four major state-owned automobile plant meeting, Russian Deputy Prime Minister, relevant ministers, as well as the four major state-owned enterprises and Russia - the Volga, Gorky, Kamaz, Sollers's person in charge of all present, the enormous and unprecedented scale. Russian Prime Minister Vladimir Putin on Russia's largest car manufacturer AvtoVAZ management of manufacturing companies and workers that the company and other difference is that the Volga automobile manufacturing company did not lay-offs, but this is a costly score.

At the assembly on the long in the past, the Russian government has resolved to an supplemental 10 billion rubles of in the household economic vehicle for government procurement program, very large efforts. "Russian restricted enterprises very large cracks in funding, the Russian Government's stated intent is very apparent, is to support restricted enterprises." Rowland advised reporters, "and these financial gatherings are just the Chinese motor vehicle rivals."

At present, all of the Russian government did not rescue package implemented, originally introduced last year has been planned for March 24 against the implementation of people buy 350,000 Russian rubles preferential loans for the following models, up to now has not happened .

"In Russia, the guidelines ushered in by the Government in six months do not have to realize it are regular, restricted government and bank statements do not pay for the life menacing obstacle in Russia, if the preferential advances in June this year can not be brought out, the every part of Russian Auto markets will face very large difficulties. "Roland said.

Russian administration in agreement with the proposition, the preceding two months, year-on-year down turn in the Russian automobile utilisation up to 40% after the March sales will fall 50%, in 2009 a decline in the general market will come to not less than 35% -40%.

Not only that, but the indecision of the Russian market still has farther aggravated the commencing of the year commence to realize strategies to finish in September of imported motor vehicles went up tariff guideline has carried on implementation of the prevailing signs. Tariffs on imported motor vehicles is not only a hard bang to Chinese deals of motor vehicles, but in addition the principle intent is to military a large influx of Japanese employed motor vehicles in Russia. Data present that the first two months of this year, the Japanese employed motor vehicles into Russia is virtually stagnant. In augmentation, imported motor vehicles for the more strict protection and ecological benchmarks are brewing, the prevailing public communication is that Russia in 2010 to realize the European IV emission standards.

Russia is a high risk financial endeavour market has become an agreed to item, even by the Russian government greeted the cross-border capital financial endeavour in Russia very very carefully, principally the Japanese auto financial gatherings, for instance, after the Toyota-owned production vegetation in Russia only in 100 million U.S. dollars, which the world at large Toyota apparent contrast.

Policy to avert the indecision of Chery are one of the justifications he moved to Belarus, and new partnerships with the Russian co-operation does not productively TagAZ Chery in addition has to face.

Depressed because of market conditions, the two sides did not realize the original investment. At present, TagAZ serious issue of funding chain, according to Russian media reports, the plant has been owed the bank 6.0 billion Russian rubles southwest of the Russian foreign trade bank, as well as 6.5 billion rubles.

Because of money shortages, the vegetation or even the identical supplier only, vendor of "barter", bonds, portions, gear, items can be utilised for settlement. Because of the need of auto components suppliers, TagAZ start output in February from the present output has not completely recovered. Chery and give the method of assembly, TagAZ furthermore impelling their own emblem of vehicle C-100, this vehicle fittings imported from Korea.

Chery insist not to give up the Russian market, with the person as saying "the Board will come out will be very difficult." Last year, Chery terminals in Russia of 1.2 million units sold this year, the same mission in Russia is the lowest bottom line. Chery is currently the focus of the work is firm confidence in the distributor in Russia, and in marketing efforts.

Roland believes that Chery assembled in Russia want to draw the lessons of the project, in the hands of the production control of Belarus. It is understood that the Chery projects in Belarus are of great importance to the Government, Belarus Deputy Prime Minister to personally intervene. "China's car prices have suffered setbacks in Russia, an important reason for this is that did not receive the support of the Russian government, and Toyota, GM and other multinational corporations are just the opposite."

Of course, the basic cause is the advantages, Belarus nationwide output has only a couple of hundreds of traveller vehicles, traveller vehicles and annual sales come to almost 25,000, that is to state Chery to go in Belarus would not influence on the formation of localized emblems, and will be supplemented beneficial.

The industry believes that there is also different from the Russian government anxious to protect the local car manufacturers, Belarus began in 2006 to set up joint venture production of Iran's car, there should be no domestic car companies are lobbying to put pressure on the Government policies often cause automobile industry adjustment.

Belarus are a very important partner of Russia, which directly involves the political and security of Russia, including Belarus, the CIS countries and Russia have signed a free trade agreement, except for certain commodities, the basic import tariff to zero. Roland said that Chery As for future projects in Belarus, the key depends on the Government of Belarus and the Russian government commitment.

Specific to drive vehicles, Chery very apparent with the pertinent population in Belarus, advised reporters, Chery vegetation in Belarus is changeable in rank to circumvent the guideline of the Russian risk, in harmony with the country's two free trade accords, as long as the restricted goods produced of Chery in Belarus 50% , you can trade overseas the Russian.

From the sales of the first two months of this year, the Chinese vehicle was nearly absolutely annihilated in Russia, which furthermore encompasses one of the development in 2008 of the Great Wall and other Chinese vehicle charges, from this viewpoint, Chery is a assortment of Belarus was no alternative but to force, but one time this street of Belarus had a proceed, will give a large impetus to China's vehicle charges demonstration, in alignment to hold the Russian market, Chinese enterprises will be more assortment in the assembly and construct of the Commonwealth of Independent States. - 21396

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