Now it is certain: the Koreans have discovered how to stay on the Russian market
January 25, 2024
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Alexey Kalitsev appeared in the information space twice this year. First – as a keynote speaker at the Association of European Businesses (AEB) conference, where, according to the
Alexey Kalitsev appeared in the information space twice this year. First – as a keynote speaker at the Association of European Businesses (AEB) conference, where, according to the credits, he was a representative of Hyundai Motor CIS, and today – as general manager of the AGR Automotive Group, owner of both the former Volkswagen factory in Kaluga as the Leningrad Region enterprise, previously owned by Hyundai. A strange arrangement, isn’t it?
Alexey Kalitsev worked in the Russian structure of the Korean brand Hyundai for almost 15 years: from 2010 to 2024. From now on he is the general director of AGR LLC, which is new no less than the domestic automotive industry in general and two assembly plants in particular will breathe life into. “With extensive management experience, Alexey Kalitsev, as CEO of AGR Automotive Group, will be responsible for the company’s long-term development strategy and strengthening its position in the Russian market,” said a press release marking the occasion. But what lies behind the stingy, deeply ‘official’ style of the newsletter?
The story is complex and very elegant, so it is worth starting with a historical precedent. Once upon a time, long ago, when the country of Russia was just settling into its new status, the “heady nineties” ruled the streets from Kaliningrad to Vladivostok. The first years in many years when it was possible to officially develop entrepreneurial activities without fear of falling into the hands of the OBKhSS – the Department for the Combating of the Theft of Socialist Property.
So some went down a slippery slope, while others started doing completely legitimate business: for example, the supply of imported cars to Russia. As you remember, there was demand. Among such businessmen, Sergei Anatolyevich Petrov shone especially brightly, who in 1991, like many, opened his own private company Rolf. By the way, he did not immediately start selling cars – at first it was car rental, an atmosphere understandable to Petrov, who worked in a similar office. But the interest here is – as always – driven by little-known nuances.
Sergei Petrov agreed with the Japanese from Mitsubishi on very non-trivial terms of cooperation: they not only sold him a batch of cars, but agreed on a partnership. The very first Mitsubishi formed the basis of the rental fleet. Then “Rolf” started repairing and maintaining, and then selling cars, becoming the sole distributor of “Three Diamonds” in Russia. And after a while, this division turned into a joint venture, known to us to this day as “MMC Rus” – the official representative office of Mitsubishi in Russia, Belarus and Kazakhstan.
The distribution of the ‘divine’ Toyota was structured in a similar way: only instead of ‘Rolf’ there was a ‘Business Car’ in that story. Let’s summarize a preliminary result: representative offices of at least two imported car brands have emerged from the Russian dealer network.
Now take note: in 2022, car manufacturers in many countries – almost all of them – lost the chance to officially sell cars in Russia. After the words of the same Alexey Kalitsev, whom we all congratulate on his new appointment, it was “sad and insulting.” Of course, under no circumstances could the business community leave the place, heated by years of monstrous investments; politics intervened. But no one forbade us to look for solutions and wait, while we left the door open with all our might?
The law of the Russian – and any other – economy is simple: entry – ruble, exit – three, return back – 10. And the Koreans felt extremely comfortable in the domestic market, which, we notice, is well deserved: since the times of the modest “Accents” and Gettsev, a huge amount of work has been done, including the launch of production. The Koreans resisted longer than many, looking for an opportunity to keep the factory – AGR Automotive Group took it over quite recently. And then a completely inexplicable phenomenon from the point of view of copyright followed: the new owner produces Korean models in the enterprise from the remaining vehicle kits. Wait a minute, was that even possible? Why did everyone else, almost on Avito, sell spare parts from warehouses? And now, on January 25, 2024, we will all get a very specific answer.
What was the foreword for? Moreover, the way to the Russian market – which was attractive to all car manufacturers without exception – was found through a reverse maneuver. Divide distribution from the importer to the dealer: he will hold the properties and developments until the sanctions storm subsides. Representatives adhere to the sanctions, do not interfere with their colleagues in other markets, and business in Russia continues and even makes a profit. And in the case of the Koreans, it is also under the control of their own person, which will certainly not harm the company.
Nice? Apparently, it took a long time to bargain and bargain, but it was worth it: it was the Korean brands that would be the first from the entire list to return to Russia – and to their usual place. And they will return with minimal losses.
Photo: globallookpress.com
Photo: globallookpress.com
Alexey Kalitsev worked in the Russian structure of the Korean brand Hyundai for almost 15 years: from 2010 to 2024. From now on he is the general director of AGR LLC, which will breathe no less life into the domestic automotive industry in general and in two assembly plants in particular. “With extensive management experience, Alexey Kalitsev, as CEO of AGR Automotive Group, will be responsible for the company’s long-term development strategy and strengthening its position in the Russian market,” said a press release marking the occasion. But what lies behind the stingy, deeply ‘official’ style of the newsletter?
The story is complex and very elegant, so it is worth starting with a historical precedent. Once upon a time, long ago, when the country of Russia was just settling into its new status, the “heady nineties” ruled the streets from Kaliningrad to Vladivostok. The first years in many years when it was possible to officially develop entrepreneurial activities without fear of falling into the hands of the OBKhSS – the Department for the Combating of the Theft of Socialist Property.
So some went down a slippery slope, while others started doing completely legitimate business: for example, the supply of imported cars to Russia. As you remember, there was demand. Among such businessmen, Sergei Anatolyevich Petrov shone especially brightly, who in 1991, like many, opened his own private company Rolf. By the way, he did not immediately start selling cars – at first it was car rental, an atmosphere understandable to Petrov, who worked in a similar office. But the interest here is – as always – driven by little-known nuances.
Sergei Petrov agreed with the Japanese from Mitsubishi on very non-trivial terms of cooperation: they not only sold him a batch of cars, but agreed on a partnership. The very first Mitsubishi formed the basis of the rental fleet. Then “Rolf” started repairing and maintaining, and then selling cars, becoming the sole distributor of “Three Diamonds” in Russia. And after a while, this division turned into a joint venture, known to us to this day as “MMC Rus” – the official representative office of Mitsubishi in Russia, Belarus and Kazakhstan.
The distribution of the ‘divine’ Toyota was structured in a similar way: only instead of ‘Rolf’ there was a ‘Business Car’ in that story. Let’s summarize a preliminary result: representative offices of at least two imported car brands have emerged from the Russian dealer network.
Now take note: in 2022, car manufacturers in many countries – almost all of them – lost the chance to officially sell cars in Russia. After the words of the same Alexey Kalitsev, whom we all congratulate on his new appointment, it was “sad and insulting.” Of course, under no circumstances could the business community leave the place, heated by years of monstrous investments; politics intervened. But no one forbade us to look for solutions and wait, while we left the door open with all our might?
The law of the Russian – and any other – economy is simple: entry – ruble, exit – three, return back – 10. And the Koreans felt extremely comfortable in the domestic market, which, we notice, is well deserved: since the times of the modest “Accents” and Gettsev, a huge amount of work has been done, including the launch of production. The Koreans resisted longer than many, looking for an opportunity to keep the factory – AGR Automotive Group took it over quite recently. And then a completely inexplicable phenomenon from the point of view of copyright followed: the new owner produces Korean models at the enterprise from the remaining vehicle kits. Wait a minute, was that even possible? Why did everyone else, almost on Avito, sell spare parts from warehouses? And now, on January 25, 2024, we will all get a very specific answer.
What was the foreword for? Moreover, the way to the Russian market – which was attractive to all car manufacturers without exception – was found through a reverse maneuver. Divide distribution from the importer to the dealer: he will hold the properties and developments until the sanctions storm subsides. Representatives adhere to the sanctions, do not interfere with their colleagues in other markets, and business in Russia continues and even makes a profit. And in the case of the Koreans, it is also under the control of their own person, which will certainly not harm the company.
Nice? Apparently, it took a long time to bargain and bargain, but it was worth it: it was the Korean brands that would be the first from the entire list to return to Russia – and to their usual place. And they will return with minimal losses.
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.