Ukrainians to Build a Car Plant in Russia
Ukraine’s Bogdan is set to assemble Chevrolets in Russia. The construction project with the annual capacity of 50,000 cars is worth between $150 and $200 million. Should the project go through, General Motors, owner of Chevrolet, will get the four assemblage plant for Chevrolets in Russia.
The Ukrainian Bogdan corporation is in talks with the Russian Economic Development and Trade Ministry over the construction of a plan with the annual capacity of 50,000 cars. Investments are to come to $150-200 million. The project may take up as much as 18 months. A source of Kommersant said the plant is most likely to be situated in Nizhny Novgorod Region, central Russia. Bogdan is to bid for a land plot in this area along with France’s Peugeot Citroen which is going to set up a plant with the capacity of 60,000 cars a year. Bogdan is also eying three more possible sites, one of them in Krasnodar Region, southern Russia.
A final agreement with General Motors has not been reached yet, but unofficial sources say that Bogdan is going to assembly Chevrolets at the plant.
If the project goes through, General Motors will have the fourth production floor for Chevrolets in Russia.
Market participants believe that an additional number of Chevrolets will be in demand. Sales of Chevrolets went up the record-high 191 percent in Russia in the first six month of 2006, compared to the period last year. Valery Tarakanov, an independent expert, says it is mostly due to deliveries of the budget Lanos (worth less than $10,000).
Dmitry Belikov and Maria Kuznetsova, Nizhny Novgorod
All the Article in Russian as of Sep. 15, 2006
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