Curve to bypass the risk of going into Russia and Belarus Chery

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 local media reports of Russia, Belarus Chery projects originally planned in April this year, prior to finalizing the project are the main contents of automobile factory in Minsk, Belarus set up stamping, welding and painting lines, the entire process of China’s Chery Automobile assembly.

Chery beside the commerce said that Chery has all the groundwork work to do a good job and is awaiting the acceptance of the Government of Belarus, the major commerce are preferential assesses and policies.

In fact, because of the high-level attention to the Government of Belarus, the project relatively uncertain prospects. Moreover, in accordance with the Russia and CIS countries signed a free trade agreement, assemble Chery cars in Belarus, as long as the local production 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 demoralised, and the every part of 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 committed to the liberate of four greatest state-owned automobile vegetation assembly, Russian Deputy Prime Minister, pertinent ministers, as well as the four greatest state-owned enterprises and Russia – the Volga, Gorky, Kamaz, Sollers’s someone in accuse of all present, the very large and unprecedented scale. Russian Prime Minister Vladimir Putin on Russia’s greatest motor vehicle fabricator AvtoVAZ organisation of fabricating financial gatherings and staff that the financial gathering and other divergence is that the Volga automobile fabricating financial gathering did not lay-offs, but this is a highly charge score.

At the meeting on the long ago, the Russian government has decided to an additional 10 billion rubles of domestic commercial vehicle for government procurement program, enormous efforts. “Russian local enterprises enormous gaps in funding, the Russian Government’s intention is very obvious, is to support local enterprises.” Rowland told reporters, “and these companies are just the Chinese car rivals.”

At present, all of the Russian government did not liberate parcel realized, earlier ushered in last year has been arranged for March 24 against the implementation of population pay for 350,000 Russian rubles preferential advances for the following types, up to now has not eventuated .

“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 buying into market has become an acknowledged detail, even by the Russian government met the cross-border capital buying into in Russia very mindfully, particularly the Japanese auto businesses, for demonstration, after the Toyota-owned manufacturer in Russia only in 100 million U.S. dollars, which the world at large Toyota conspicuous contrast.

Policy to avoid the uncertainty of Chery are one of the reasons he moved to Belarus, and new partnerships with the Russian co-operation does not successfully TagAZ Chery also has to face.

Depressed because of market circumstances, the two boundaries did not understand the primary investment. At present, TagAZ sombre subject of funding flexible chain of bonds, as showed by Russian broadcasting descriptions, the vegetation has been was indebted the bank 6.0 billion Russian rubles southwest of the Russian foreign trade bank, as well as 6.5 billion rubles.

Because of currency shortages, the vegetation or even the matching supplier only, seller of “barter”, bonds, allocations, apparatus, wares can be employed for settlement. Because of the deficiency of auto elements suppliers, TagAZ commence goods produced in February from the prevailing goods produced has not entirely recovered. Chery and give the method of assembly, TagAZ in addition forcing their own brand label of motor vehicle C-100, this motor vehicle fittings imported from Korea.

Chery assert not to stop the Russian market, with the individual as saying “the Board will arrive out will be very difficult.” Last year, Chery terminals in Russia of 1.2 million flats traded this year, the identical objective in Russia is the smallest base line. Chery is actually the aim of the work is firm self-assurance in the vendor in Russia, and in trading efforts.

Roland accepts as factual that Chery assembled in Russia desire to draw the courses of the task, in the hands of the output command of Belarus. It is appreciated that the Chery tasks in Belarus are of large significance to the Government, Belarus Deputy Prime Minister to in person intervene. “China’s vehicle charges have endured setbacks in Russia, an significant cause for this is that did not obtain the support of the Russian government, and Toyota, GM and other multinational companies 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 development trusts that there is in addition divergent from the Russian government apprehensive to look after the restricted motor vehicle manufacturers, Belarus commenced in 2006 to set up connection endeavour goods produced of Iran’s motor vehicle, there should be no in the household motor vehicle financial gatherings are urging to put insist on the Government guidelines often source automobile development 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 engine vehicles, Chery well renowned with the applicable persons in Belarus, notified reporters, Chery vegetation in Belarus is changeable in alignment to circumvent the principle of the Russian risk, in agreement with the country’s two free trade affirmations, as long as the localized output of Chery in Belarus 50% , you can trade items the Russian.

From the sales of the first two months of this year, the Chinese car was almost completely annihilated in Russia, which also includes one of the growth in 2008 of the Great Wall and other Chinese car prices, from this perspective, Chery is a selection of Belarus was no choice but to force, but once this road of Belarus had a go, will give a great impetus to China’s car prices example, in order to keep the Russian market, Chinese enterprises will be more selection in the assembly and manufacture of the Commonwealth of Independent States.