Heavy promises

     When the Russian Economic Development and Trade Ministry, the Russian Industry and Energy happily allowed to enter Russia for "industrial assembly" transnational car companies, now is how to achieve the original agreement provided for in the localization rate agonize at different!

     Recently, a number of transnational auto companies have said that in Russia "industrial assembly" project may not be able to achieve the original promise of the localization rate, as parts of Russia's backwardness, quality needs to be raised from the strict standards of loading there is still a considerable gap !

     However, on March 29, 2005 the Russian government approval of the No. 166 "for changes in the Russian Federation for industrial assembly of automotive parts customs duties," the resolution provides for:

     1. Industrial assembly can not be below the company's annual production capacity of 25,000 cars.

     2. The existing enterprises within 18 months, newly established enterprises in 30 months, must ensure that the vehicle in Russia to achieve the welding, painting and assembly of the three.

     3. Stages to gradually reduce the import of auto spare parts. Automobile manufacturer in Russia for industrial assembly after 24 months of imports of spare parts should be at least reduce the proportion of 10 percent (equivalent to total imports), followed by another 18 months to decrease the proportion of 10 percent in another 12 months after the third Decreasing the proportion of 10 percent, or four and a half years in the period to import spare parts to reduce the proportion of 30 percent.

     ……

     Leningrad, Russia, Yuganskneftegas Woluo mandrax thank the leadership of the Ford factory, the Russian local production of automobile steel enterprises complained it, "of poor quality, can not be used."

     December last year in the Russian Tatar Republic of La Bujia special economic zones began assembling Fiat Ducato commercial vehicle of the Italian auto company Fiat, is also facing due to the Russian domestic auto parts quality and almost impossible to meet the four and a half years in local The rate of 30 per cent of the demand!

     St. Petersburg had just attended the "2008 International Conference on the Russian car," GM's representatives claimed that the Russian General Factory of the localization rate of products in 2010 will not reach 30 percent.

     Tatar Republic of the Russian special economic zones in the La Bujia some foreign car-assembly enterprises that future automobile localization rate of more than 70 percent, but the localization rate of these products only 10.7 percent, to plan the end of 15.3 percent.

     No progress

     Since 1998 the U.S. Ford Motor Company and the Russian Economic Development and Trade Ministry signed a "free storage," Ford cars assembled in Russia, pronto Ten years have passed. But Russian experts pointed out that the Russian auto parts industry is still reluctant, and can not withstand any criticism! Powerful Russian auto parts cluster and did not like the Russian government and hoped that many Russian experts on schedule, as there!

     Ten years ago the Russian foreign auto parts in cars on the matching rate of 5%, and after 10 years in those more stringent quality control of foreign cars, automotive components of the Russian adoption rate with only 10 percent. Even if requested release, the localization rate of only about 20 percent. And further increase the localization rate is all the more difficult, especially the engine, gearbox and running of such a complex assembly, and so on!

     Lack of high-quality automotive steel, the lack of high-quality automotive components, will definitely affect the assembly of safety, durability……

     Russian analysts pointed out that the Russian automotive components is not only the backward aging equipment, outdated technology, but in many Russian auto parts manufacturers inertia, chaotic management of the public can make use of various advanced production and management turned a blind eye to information , Leading to mutations in the market restructuring and fierce competition at a loss.

 
     Discounted the effect of

     Is to reduce automotive product quality, brand image of self-destruction, or use of the Russian automotive components increase the localization rate » Afflicted with a series of foreign car manufacturers!

     However, some foreign car companies have their own distinctive approach to answer this question!

     Leningrad Oblast in the Russian-Woluo mandrax, Yuganskneftegas assembly and manufacture their products for many years the Ford Motor Company, today decided to at least 2010 years ago continue to use imported cars rolled steel. And will rely on its own technology and production forces "in Russia's industrial assembly" the necessary number of automotive components. For example, the future Russian-installed by Ford sedan of the brake shoes, it will be in Leningrad, Russia, V. Xie Woluo Yuganskneftegas production……

     However, this way, in Russia launched the "industrial assembly" of foreign car companies to produce in line with the stringent standards of the European automotive components, you must continue to invest heavily. But inevitably lead to "industrial assembly" increases in the prices of automotive products, the localization of "industrial assembly" the effect of greatly reduced.

     It also decided that the high demand of foreign automobile companies in Russia, "the localization of the road" can only be a "long way from its repair Xi Wu Jiang from top to bottom and search!"

     Around 2010, some foreign car companies in Russia finished construction began assembling their own cars, but by then the Russian auto parts to a good level of support where to go » New methods of production, effective management, the strict production standards and advanced detection instruments, as well as personnel training and so on, we need a process!

     Indeed, the pendulum in the major foreign car companies before the strict 30 percent localization rate, will be a big challenge!

     Because, if the car maker will be unable to meet this requirement, will be paid in full spare parts import tariffs.

     Extension to read:

     Xiangjie Russia "industrial assembly" policy

     March 29, 2005, the Russian government approved a No. 166 "for changes in the Russian Federation for industrial assembly of automotive parts customs duties," the resolution, proposed foreign automobile manufacturer in the "industrial assembly" within the framework of the production investment agreement signed Is the near future national development priorities of the auto industry and fundamental way. Russia's auto industry policy from the past, the local car makers to the protection of the joint venture vehicle for adjustment.

     Russian government to import into the vehicle in Russia to establish a full set of assembly production lines, and hope that through a variety of measures to restrict imports of foreign cars, so that the number of imported cars in 2010 before stability in the annual 40 to 500,000 level, while expanding Domestic car assembly industry output increased to 100 per year to 1.1 million level to the progressive realization of Russia's imports of Nissan Motor alternative.

     April 15, 2005, the Russian Economic Development and Trade Ministry, the Industry Department of Energy and the Ministry of Finance jointly promulgated Decree No. 73, on the March 29, 2005 enactment of section 166 of the document on foreign brands in the automotive industry in the territory of Russia The concept of assembly and further explanation and stressed that the mandatory vehicle inspection test.

     August 18, 2006, in "industrial assembly" to the Government after the enactment of the Russian Federation of Industry and Energy, the Russian Economic Development and Trade Ministry and the Russian Federation Ministry of Finance three departments jointly issued a "motor vehicle identified 'industrial assembly' concept and The concept of using imported auto parts, Russia 'foreign trade activities classification code' category in the 8701-8705 and motor vehicle assembly, parts of the Ordinance "and" industrial assembly "concept specific details. Including paint, pipe, plastic fasteners, automotive glass and mirror, Spring, Jusuo, body, chassis, engines, pumps, air conditioning, shaft, ignition system, alarm system, audio, lights, bumpers, instrument, Converters, timers, and blowing rain-seat 130 kinds of components, such as tax exemptions, the windshield, seats, mirrors, locks, the import tariff from 12 to 15 percent adjusted to 3 to 5 percent, Identified as the "industrial assembly" of imported auto parts expanded to over 300.

     In addition, the regulations also require these parts can only be used in 8701-8705 types of vehicles assembled, investors must be Russian legal entities, needs and the Russian Economic Development and Trade Ministry signed an agreement in this agreement to gradually reduce the level of imports of parts and components. Agreement by the Russian Economic Development and Trade Ministry is responsible for supervision. Once the breach of contract in addition to all kinds of punishment other than to instruct manufacturers to deliver in accordance with the agreement of all tariffs on imports (12 to 15 per cent). Has been phased reduction of these auto parts import tariff.

     With the Russian Economic Development and Trade Ministry signed seven years (for existing businesses) or eight years (for new projects) "industrial assembly" agreement of foreign car companies, can enjoy a 0% to 3% of the import tariffs for car assembly Parts of the concessions.

     April 2007 Russian Industry and Energy, Economic Development and Trade Ministry, the Ministry of Finance jointly issued the relevant documents, defined the "industrial assembly", and that since April 15 with effect from 61 kinds used for industrial assembly Cut import tariffs on automobile components (to 3% to 5%), the abolition of car production equipment import duties.

     June 29, 2007, the Russian Economic Development and Trade Ministry and the Russian decision of the Industrial Department of Energy, will sign an investment agreement auto industry assembly extend the deadline to September 15, 2007.

     October 10, 2007, the Russian government website also announced that imports will be used for "industrial assembly" of auto parts from the implementation of long-term tariff measures.

     Industrial policies, as soon as assembly of the biggest beneficiaries of the Russian consumer groups, the purchase of affordable imported cars will no longer be unattainable thing should be followed by the number of beneficiaries in the construction of the Russian car assembly enterprises, investment environment very Major improvement.

     Russian official believes that foreign brand cars in Russia in the implementation of policies for industrial assembly obvious effect, in large measure in 2006 to promote the development of the Russian automobile manufacturing industry. According to the agreement signed by the foreign cars assembled in Russia will reach the area of investment over 2 billion U.S. dollars, can guarantee that with an annual output of 700,000 cars.

     According to Russian Industry Department of Energy data show that the auto industry development report, in 2006 the total Russian sales of motor vehicles 2.06 million, up 20 percent growth in 2005. Of which 800,000 for Russia China-made cars, down 5 percent from the Russian foreign brand cars assembled in sales of 280,000, an increase of 87 percent, and imports from the new car sales of 720,000, increasing 76 percent; Imports of second-hand car sales of 20,000, down 19 percent. Russia's foreign brand cars assembled motor vehicles account for 13.6 percent of total sales.

     November 2007, Russian Economic Development and Trade Ministry on foreign brand cars in Russia in the industrialization of the assembly system re-evaluation of the implementation of results. Assessment report pointed out that since the implementation of this system, to 2010, Russia will attract 50 to 60 billion dollars in investments (before estimated at 4 billion U.S. dollars), the most conservative estimates, the annual output of foreign brand cars will reach 120 ~ 1300000 . To September 15, 2007, the Russian and foreign automobile manufacturers have signed 18 investment agreements industrial assembly. From September 15 to November 10 is part of the new memorandum of cooperation signed, including with the public, Magna, Siemens, Bosch, Bantle, Tenneco, MagnettiMarelli companies such as the signing of the Memorandum of spare parts and vehicle production And so on.

     November 10, 2007 for the signing of the system in the industrial assembly and production of automotive spare parts under the new agreement and memorandum of the end of the period. In this period before the signing of the memorandum of the company will be able to continue to sign investment agreements.

     However, fear of China's car "to bury the Russian auto industry's coffin covered with Dingding of" fear, making China's auto manufacturers in Russia's "industrial assembly" project without an "escape."

     December 25, 2007 Russian Deputy Economic Development and Trade Minister Androsov a clear-cut stand and destroyed a Chinese auto manufacturer in the last glimmer of hope. He said: "At the same Russian Economic Development and Trade Ministry signed 'industrial assembly' Memorandum of many car manufacturers in China and not manufacturers."

    This means that China's car in the Russian four "industrial assembly" project complete abortion. China Great Wall Motor Company of the Republic of Tatarstan in the Russian city of La Bujia assembly, Geely Automobile Company of China Zhongxing Automobile Company and the Russian Urals car and engine assembly plant project, China's Lifan Motor Group in Russia-- Circassian Autonomous Prefecture of Cherkessk Derways the assembly plant project and the Beijing Automotive Industry Holdings Co., Ltd. in Ulyanovsk, Russia's light truck assembly project ultimately was not Russia's "industrial assembly" concessions. These assembly projects in Russia originally planned a total investment 385 million U.S. dollars, China's auto assembly plans 230,000.

     At present, Russia has signed a total of at least 16 foreign automobile industry assembly agreement and six auto parts assembly agreement. The assembly output is expected in 2012 will reach 1.4 million more.

     According to the data, in 2007 Russia sold 2.38 million new cars, market capacity over the previous year grew by 37 percent. Sales of new cars imported over 1.22 million, an increase of 64 percent. Assembled by the Russian foreign brand cars sold rose to 407,700, an increase of 59.5 percent. Russia's foreign brand cars have been assembled Russian passenger cars accounted for 14.8 percent of total sales, 2001, an increase of 1.2 percentage points.