| Other Photos |
 |
|
 |
Suzuki Will Assemble 4x4 in Russia
Suzuki plans to build a plant in Russia with a capacity of 25,000 automobiles per year and the possibility of expansion to 50,000 at a cost of $115 million. It will produce all-wheel drive vehicles. The plant will cover 50-80 ha. in the Shushary industrial zone on the edge of St. Petersburg and be completed by the end of the year. Production will be launched in 2010 or 2011. General Motors and Toyota also have plants at Shushary.
A Kommersant source in the auto industry said that the plant will make two all-wheel drive models, the Grand Vitara and a model that is not in production yet, perhaps the SX4. Some of the vehicles made at the plant may be exported.
So far, Suzuki and the Ministry of Economic Development and Trade have only signed a memorandum of intent, which does not bind Suzuki as an investor. Around the end of this month, sources say, Suzuki will present the ministry a business plan for the project and will be granted the status of industrial assembler, which will allow it to import auto parts with lower import duties. The company should have signed the necessary documents with the City of St. Petersburg on land allotment by that time.
The company's plans are unusual in that no foreign company has a plant in Russia that makes 4x4 models exclusively. Only Toyota and Volkswagen have mentioned the possibility of exporting their Russian-made cars. Analysts say that Suzuki's plan looks solid. Demand for the Grand Vitara is the fastest growing in its class, rising 186 percent in the first quarter of the year, and hopes are high for the SX4. Suzuki now ranks 13th in carmakers' sales in Russia, with 16,000 sold annually.
www.kommersant.com
All the Article in Russian as of May 10, 2007
|
|
|
