Why the Hyundai factory in St. Petersburg is doomed to failure under its new owner
September 19, 2023
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The fate of the car factory near Saint Petersburg abandoned by Hyundai is still not entirely clear. There are many rumors about his future, but none have been
The fate of the car factory near Saint Petersburg abandoned by Hyundai is still not entirely clear. There are many rumors about his future, but none have been definitively confirmed yet. The AvtoVzglyad portal thought about which development of events is still preferable for the enterprise.
The leaders of the Hyundai Motor Group resisted for a long time and tried in every possible way to crawl away from the skating rink of US sanctions, to ride out the storm and, even like a scarecrow or a carcass, to hold out until the moment at which the world enters the stage of tranquility. With each month, however, the hope for a happy outcome from the wait-and-see tactic faded and non-productive expenses piled up. It became clear that a decision had to be made: resume production or sell assets. But you can’t argue with Big Brother-Behind-the-Puddles, so basically there was only one way out: sell.
Projects in the clouds
The Koreans have had and continue to have some proposals in this regard. However, from all indications, calculating the most preferred option is not an easy task. It seems that all options were worse than each other. Ultimately, two main contenders for the Korean company’s legacy emerged: Avtotor and Avilon. But lately all insiders agree that Avtotor has no chance here.
I wish I could handle my goodness
However, the favorite of the “breed” behaves very mysteriously. The Avilon dealer that once took away a car production facility from the fugitive Volkswagen with a capacity of 225,000 cars per year and an engine factory that could produce up to 150,000 units – all for a ridiculous 125 million euros. Six months have passed since that glorious moment when the general public first heard about the deal. And on the territory of the car assembly plant there is still silence and desolation.
As for the thoughts flowing through the executive convolutions, there is no clarity here; on the contrary, there is complete confusion and hesitation in opinions. “They claim that the Swedish frigates are sailing out to hit us in the face; some say that the German, on the other hand, is lowering his saucers into the sea opposite us; and those who look with caution upon the English fleet, and remember that the English are always doing something.”
Simply put, some automotive experts claim that Avilon’s top managers are working on a gigantic scale to create a joint venture, the main production facilities of which will be concentrated near Kaluga. Others predict that there is a fundamental search for partners to organize large-scale assembly. And still others are wary, but gamble on the bad option of repurposing the factory into a banal sawmill. And for some reason it seems that the third option is the most realistic, if we consider the fate of the Kaluga enterprise.
Bow to the Chinese?
But it’s worth asking: is it really possible to somehow use industrial sites without dismantling the equipment installed there and turning it into a coworking space or warehouse?
After all, assembly lines can only produce those models for which they were originally intended. So maybe respected contenders should pay attention to the same Chinese who already have a joint venture with Hyundai?
For example, if the Korean brand’s place is taken by Beijing Hyundai Motor Co., reviving the empty workshops will be a more feasible task. By the way, the same option is possible with the Kaluga plant, only it will have to be restored with the help of SAIC Volkswagen Automotive Co.
If, of course, the Chinese agree to such a trick with their ears, without fear of reactions from abroad. And of course, if our automotive industry leaders have sufficient diplomatic organizational skills. However, both are very problematic.
Photo globallookpress.com
Photo globallookpress.com
The leaders of the Hyundai Motor Group resisted for a long time and tried in every possible way to crawl away from the skating rink of US sanctions, to ride out the storm and, even like a scarecrow or a carcass, to hold out until the moment at which the world enters the stage of tranquility. With each month, however, the hope for a happy outcome from the wait-and-see tactic faded and non-productive expenses piled up. It became clear that a decision had to be made: resume production or sell assets. But you can’t argue with Big Brother-Behind-the-Puddles, so basically there was only one way out: sell.
Projects in the clouds
The Koreans have had and continue to have some proposals in this regard. However, from all indications, calculating the most preferred option is not an easy task. It seems that all options were worse than each other. Ultimately, two main contenders for the Korean company’s legacy emerged: Avtotor and Avilon. But lately all insiders agree that Avtotor has no chance here.
I wish I could handle my goodness
However, the favorite of the “breed” behaves very mysteriously. The Avilon dealer that once took away a car production facility from the fugitive Volkswagen with a capacity of 225,000 cars per year and an engine factory that could produce up to 150,000 units – all for a ridiculous 125 million euros. Six months have passed since that glorious moment when the general public first heard about the deal. And on the territory of the car assembly plant there is still silence and desolation.
As for the thoughts flowing through the executive convolutions, there is no clarity here; on the contrary, there is complete confusion and hesitation in opinions. “They claim that the Swedish frigates are sailing out to hit us in the face; some say that the German, on the other hand, is lowering his saucers into the sea opposite us; and those who look with caution upon the English fleet, and remember that the English are always doing something.”
Simply put, some automotive experts claim that Avilon’s top managers are working on a gigantic scale to create a joint venture, the main production facilities of which will be concentrated near Kaluga. Others predict that there is a fundamental search for partners to organize large-scale assembly. And still others are wary, but gamble on the bad option of repurposing the factory into a banal sawmill. And for some reason it seems that the third option is the most realistic, if we consider the fate of the Kaluga enterprise.
Bow to the Chinese?
But it’s worth asking: is it really possible to somehow use industrial sites without dismantling the equipment installed there and turning it into a coworking space or warehouse?
After all, assembly lines can only produce those models for which they were originally intended. So maybe respected contenders should pay attention to the same Chinese who already have a joint venture with Hyundai?
For example, if the Korean brand’s place is taken by Beijing Hyundai Motor Co., reviving the empty workshops will be a more feasible task. By the way, the same option is possible with the Kaluga plant, only it will have to be restored with the help of SAIC Volkswagen Automotive Co.
If, of course, the Chinese agree to such a trick with their ears, without fear of reactions from abroad. And of course, if our automotive industry leaders have sufficient diplomatic organizational skills. However, both are very problematic.
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.