Hyundai Endeavors to Win Back Leadership
Hyundai intends to use all capacity of Taganrog Automobile Works (TagAZ) to assemble its models, stepping up their production from 60,000 in 2006 to 120,000 by 2009. So, Hyundai will probably drop the plans to build its own plant in Russia. But if it finally decides in favor of constructing new facilities here, TagAZ will have to be content with assembling the obsolete models.
Hyundai is willing to step up assembly of its models at TagAZ, North Korean media reported yesterday with reference to co-managing director of Hyundai. TagAZ will assembly 75,000 Hyundais in 2007, stepping up the number to 80,000 by 2008 and to 120,000 by 2009, which will call for all capacity of the plant. Top-rank manager attributed the decision to the booming automobile market of Russia but he didn’t specify whether TagAZ will be assembling new models.
According to European Business Association, the sales of new foreign cars in Russia surged 67 percent to 861,700 from January to July of this year. Hyundai sales gained 20 percent to reach 67,500.
Controlled by Doninvest, TagAZ has been assembling Hyundais since 2000. The product line includes Accent, Sonata, Santa Fe and Porter; H1’07 sales stood at 30,100 cars.
Until very recently, Hyundai has been continuously cutting down the planned supply of components to TagAZ due to the general shortage of cars on the Asian market and problems with Trade Unions. TagAZ vowed to assemble 75,000 cars far back in 2006, reminded AG Capital Managing Director Alexander Agibalov. But it assembled no more than 60,000 because of the short supply of components.
Now it is clear that Hyundai has revised its “too conservative outlook” for Russia’s sales, Agibalov said, pointing out that the news isn’t bad for TagAZ.
Meanwhile, Hyundai lost its leading standing in Russia. In terms of sales, it has slithered from the first position in 2006 to the current fourth score.
www.kommersant.com
All the Article in Russian as of Aug. 22, 2007
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