Ukraine’s Bogdan to Assemble Chinese JAC Cars

VIENNA – Bogdan Motors, the Ukrainian assembler of Lada and Hyundai vehicles, will launch output of Chinese JAC cars from complete-knocked-down kits at its plant in Cherkassy.

The first model slated for assembly is the JAC J5 sedan, with initial pilot builds to get under way in October. Bogdan expects to produce some 180 units this year and to reach monthly output of 300 in August 2014.

Volume assembly of the JAC S5 cross/utility vehicle is to start in March 2014, and Bogdan is expected to hit a volume of 200 units per month in October 2014.

The JAC J5 sedan, known as the Jianghuai Heyue B15/B18 in China, was unveiled at the Beijing auto show in 2008. Volume production of the car began in August 2009.

The JAC S5 CUV, called Jianghuai Ruifeng S5 by the Chinese, premiered as the Rein-Ruiying S-II at the Beijing auto show in 2012. Volume output began at a new plant in Guangzhou, China, in January.

Bogdan plans to export the JAC vehicles to Russia and other Commonwealth of Independent States countries.

The agreement between Bogdan and JAC results from a special import duty on new cars with 1.0L to 2.2L gasoline engines that was introduced by the Ukrainian government in mid-April and is intended to protect domestic auto makers.

Bogdan saw production plummet last year as a result of the economic crisis and the country’s weakened car market.

The assembler resumed output in Cherkassy this month and plans to produce up to 15,000 vehicles this year, about 25% more than in 2012. However, the factory, which opened in June 2008, has an annual capacity for 120,000 vehicles.

Bogdan’s current portfolio includes the Lada 2110 sedan and 2111 wagon, two models that haven’t been made in Russia for several years. They are badged as the Bogdan 2110 and 2111 and are sold both domestically and in export markets. Sharing the same platform is the Bogdan 2310 light-delivery vehicle.

The company also assembles the previous-generation Hyundai Tucson CUV.

Bogdan’s top management has been negotiating for years with both Hyundai and Lada maker AvtoVAZ about the possibility of assembling additional models, but so far has not landed any new deals.

Bogdan also is in talks with Chinese auto makers Great Wall and Lifan, Kiev-based researcher AUTO-Consulting quotes Rudolf Arzumanian, vice president-production, as saying.

According to a Bogdan planning chart published by AUTO-Consulting, the company would like to build the first 20 pilot units of the Great Wall Voleex C30 compact sedan in December. Volume production of the Great Wall Haval M4 SUV could start in January 2014 and the Great Wall Voleex C50 sedan could be added in May.

The chart shows Bogdan targeting output of 700 Great Wall vehicles per month by December 2014, including 300 C30, 200 M4 and 200 B50 models.

It is unclear whether a final contract with Great Wall already has been signed.

Bogdan’s sister companies currently are acting as distributors of Great Wall and Lifan vehicles sourced as completely built-up units from China.