Eugene Gerden


Eugene Gerden writes about the Russian auto industry from his base in St. Petersburg.

Hyundai Launches Russian Output of Popular Solaris
The Solaris’ launch, combined with the Sonata’s return and more active promotion of the Creta CUV, should result in sales growth of 10%-12%, Hyundai says.
Mitsubishi Banking on CUVs to Aid in Russia Recovery
The automaker is focusing its Russia strategy on an upcoming new version of its Outlander and a new, diesel-powered Pajero Sport, which combine for 80% of Mitsubishi sales in a market where CUVs are among the few bright spots.
Russia Looks to Boost Exports Amid Domestic Slump
The proposed subsidies do not have unanimous support from the government. Officials with the Ministry of the Economy, for example, believe ongoing state support could leave automakers without incentives to cut costs or improve product quality.
Utility Vehicles Prop Up Foundering Russian Market
The utility vehicles’ share of the Russian market through the first 10 months of 2016 was 38.4%, up from 35.8% a year earlier.
Russia Ties Automaker Aid to Expanding Facilities
A Russian Ministry of Industry and Trade spokesman says the new rule governing distribution of 2017 subsidies is a response to a shortage of facilities where car owners can have their vehicles serviced.
Russian Official Predicts 7% Boost in 2017 Output
Production is running below 50% of capacity in response to a sales slump dating back to 2012. Light-vehicle deliveries fell just 2.5% in October but were down 13.2% during the year’s first 10 months, according to WardsAuto data.
Daimler Considering New Russian Mercedes-Benz Plant
Government sources say Daimler could sign an investment contract committing it to localizing parts purchases, design new technologies and products and create new jobs in exchange for government tax breaks, customs relief and other benefits.
WTO Rules Could Stifle Global Automakers in Russia
Global automakers have received subsidies and other benefits for localizing production by purchasing more Russian-made parts and expanding R&D activity in the country. But Russia has been unable to extend the agreements made before its 2012 admission to the World Trade Organization, as they would violate WTO rules.
Mazda to Add Engine Production at Russian Plant
The 50,000-unit-capacity plant in Vladivostok mainly will produce Mazda’s SkyActiv-G engines for export. Neither Mazda nor the government say whether output of Mazda6 and Mazda CX-5 models now built there will increase as part of the new investment.
Ford’s Russia JV Sets Sights on EU for Parts Exports
Besides the U.K. and Germany, parts made by the Ford Sollers Russian joint venture will be exported to Ford’s Romanian plant, which produces B-Max compact vans and plans to begin building EcoSport compact CUVs about a year from now.
Russian Subsidies to Benefit Automakers With Most Localization
The Russian Ministry of Industry and Trade says the bulk of the subsidies will be allocated to manufacturers with the most sales, with a significant amount provided to automakers with the highest levels of localization.
GM Denies Reports of Bigger Chevy Presence in Russia
GM reportedly plans to resume sales of its entire Chevrolet range in Russia (Aveo, Captiva, Cruze and Lacetti) that virtually ended when the automaker shut down its plant in St. Petersburg last year. The automaker disputes the news.
Russian Roadblock for New-Gen Chevrolet Niva Lifted
GM-AvtoVAZ displayed a new Niva concept at the 2014 Moscow auto show. But Russia’s financial crisis, marked by the ruble’s falling value and the effects of Western economic sanctions, prompted the JV to indefinitely suspend the project.
Automakers Resist Russian Emergency-Alert Mandate
Domestic and foreign automakers operating in Russia also will be required to install the analogous European eCall system in their cars starting in March 2018.
Utilities Defy Russian Auto Market’s Sales Futility
In 2004, SUVs and CUVs accounted for only 12% of the Russian market, but their share has more than tripled since then to 38%. Analysts predict the segment’s share soon will reach 40% and not fall below that mark for the next five years.

Feb 10, 2017

Volvo V60 Polestar 2.0L Turbo/Supercharged DOHC 4-cyl. -- 2017 Award Acceptance

Stefan Hermelin, general manager-Monitoring & Concept Center, accepts Volvo Cars' award at the 2017 Wards 10 Best Engines ceremony....More


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