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Avtotor told the Duma about his problems

  • July 5, 2023
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Viacheslav Volodin visited a car assembly plant in the Kaliningrad region during an external meeting of the State Duma Council. He was accompanied by party leaders and chairmen

Viacheslav Volodin visited a car assembly plant in the Kaliningrad region during an external meeting of the State Duma Council. He was accompanied by party leaders and chairmen of relevant committees of the Russian parliament.

The delegation headed by Volodin got acquainted with Avtotor’s technological processes, as well as with the model range of products manufactured at the enterprise. To date, it includes vehicles from three Chinese brands: BAIC, Kaiyi and SWM.

Now nine models roll off the factory production line, including the Kaiyi E5 and BAIC U5 Plus sedans, the BAIC X35 crossover, the BAIC BJ40 frame SUV, as well as three SWM crossovers: the mid-sized SWM G01, the compact SWM G01F and the full-size SWM G05 Pro. In addition, Avtotor assembles two cargo models. During a tour of the factory, Vyacheslav Volodin emphasized the importance of localizing car production in Russia.

– Localization should be maximum and support for enterprises should be commensurate with its level. If we don’t have localization, we don’t have our own technologies, components, our own automotive industry,” the Duma speaker said.

And, I must say, in that sense the Kaliningraders are right. Partly because, as Valery Gorbunov, Chairman of the Board of Directors of Avtotor Holding LLC, emphasized, “a condition of our cooperation with new partners – Chinese companies – the fulfillment of the conditions of the current Special Investment Contract (SPIC) with the Ministry of Industry and Commerce of the Russian Federation and the Government of the Kaliningrad Region, creating capacity to deepen technological production processes, increase localization, create production of electric vehicles and auto parts. And by the end of 2023 , 12 new enterprises should appear at the company’s new production site, including factories for the production of auto parts, electric vehicles, as well as a foundry and a mechanical plant.

However, we note that this whole process can be seriously hampered by possible changes to Decree of the Government of the Russian Federation No. 719 on the revision of the system of scoring points for localization in terms of welding and body painting work, which, as will inevitably lead to an increase in the cost of cars produced. Let’s hope that Mr. Volodin will pay attention to the problem.

The delegation headed by Volodin got acquainted with Avtotor’s technological processes, as well as with the model range of products manufactured at the enterprise. To date, it includes vehicles from three Chinese brands: BAIC, Kaiyi and SWM.

Now nine models roll off the factory production line, including the Kaiyi E5 and BAIC U5 Plus sedans, the BAIC X35 crossover, the BAIC BJ40 frame SUV, as well as three SWM crossovers: the mid-sized SWM G01, the compact SWM G01F and the full-size SWM G05 Pro. In addition, Avtotor assembles two cargo models. During a tour of the factory, Vyacheslav Volodin emphasized the importance of localizing car production in Russia.

– Localization should be maximum and support for enterprises should be commensurate with its level. If we don’t have localization, we don’t have our own technologies, components, our own automotive industry,” the Duma speaker said.

And, I must say, in that sense the Kaliningraders are right. Partly because, as Valery Gorbunov, Chairman of the Board of Directors of Avtotor Holding LLC, emphasized, “a condition of our cooperation with new partners – Chinese companies – the fulfillment of the conditions of the current Special Investment Contract (SPIC) with the Ministry of Industry and Commerce of the Russian Federation and the Government of the Kaliningrad Region, creating capacity to deepen technological production processes, increase localization, create production of electric vehicles and auto parts. And by the end of 2023 , 12 new enterprises should appear at the company’s new production site, including factories for the production of auto parts, electric vehicles, as well as a foundry and a mechanical plant.

However, we note that this whole process can be seriously hampered by possible changes to Decree of the Government of the Russian Federation No. 719 on the revision of the system of scoring points for localization in terms of welding and body painting work, which, as will inevitably lead to an increase in the cost of cars produced. Let’s hope that Mr. Volodin will pay attention to the problem.

Source: Avto Vzglyad

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