Bogdan Launches JAC Assembly in Ukraine

VIENNA – Pilot assembly of the JAC J5 sedan from complete-knocked-down kits sourced from China is under way at the Bogdan car plant in Cherkassy, Ukraine.

Bogdan, which assembles old Lada models and the previous-generation Hyundai Tucson, hopes to increase utilization of its CKD facility with the help of Chinese cars.

The plant in Cherkassy, which has an annual capacity of 120,000 CKD vehicles, only assembled 3,803 cars and 116 car-based light-commercial vehicles this year through July.

The auto maker will add the JAC S5 cross/utility vehicle in November. The sedan will be available with 1.5L and 1.8L gasoline engines, while the CUV will be powered by a 2.0L gasoline powerplant.

According to a Bogdan statement, JAC is ready to invest in Ukraine in order to increase the local content to 51%.

Bogdan plans to export Ukrainian-made JAC cars to other Commonwealth of Independent States countries, mainly to Russia. Local content of at least 51% must be met for the vehicles to be considered Ukrainian products in order to pay no import duty in Russia.

In addition to the J5 and S5 models, which will be assembled locally, Bogdan plans to launch sales of other JAC models sourced as completely built-up imports from China in September.

Bogdan has finalized certification of five JAC models in Ukraine, including the J5 and S5. The import portfolio will include the JAC J2 small hatchback, J3 compact sedan and J6 wagon. The J3 Cross, a hatchback with higher ground clearance, will be added in 2014.

Bogdan also is expected to import some J5 and S5 units prior to the switch to sales of locally assembled vehicles.