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Not just China: which foreign car manufacturers will continue to work in Russia

  • November 10, 2022
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As they say, war is war, and lunch (more precisely, business) is on schedule. It is probably precisely this principle that guides foreign car companies that continue to

As they say, war is war, and lunch (more precisely, business) is on schedule. It is probably precisely this principle that guides foreign car companies that continue to operate in the Russian market despite sanctions and pressure from the collective West.

While giants like Renault, Nissan, General Motors and Mercedes-Benz flee Russia, lose their slippers and prepare after them – their hair back – for the release of Toyota and Lexus, the Chinese comrades have risen at lightning speed, occupying dealers who were left to the mercy of fate, and at the same time eat an increasing share of the market. Their rapid breakthrough is made possible in particular by ‘frozen’ deliveries and inactive factories, including headliners in the market represented by Hyundai and Kia, which have long held the leadership position in the passenger car segment among foreign brands.

If we run out of foreign brands, the Russian car market will become completely Chinese. The only exception will be the LADA of Russian origin, whose only asset in the battle for the consumer will be price. Or is it too early to make such disappointing forecasts? Let’s see who else stayed in Russia, and most importantly – why.

JAPANESE

So the “Japanese” are basically gone. Mazda is discussing the possibility of selling its factory, so is Isuzu, and Infiniti has given us a full blow. Perhaps only Suzuki and Subaru were left, which had barely clung to the market with sluggish sales runs. Oh yes: Mitsubishi is still alive. But at least the latter has a factory here, which means that with favorable developments, the company can resume both production and shipment of cars to dealers quite quickly. Unless, of course, the infamous semiconductor shortage, which everyone has already forgotten, doesn’t interfere, but it, like the coronavirus, is still relevant. In any case, we can’t help but be pleased that all Japanese car manufacturers continue to provide customers with warranty and after-sales service. Special thanks to AvtoVAZ for expressing the desire to pick up Nissan customers.

KOREANS

Producers from the Land of Morning Rest have adopted a wait-and-see attitude. In order not to annoy the already angry West, they once again try not to “shine”, while the possibility of permanently stopping the sale of new cars is unfortunately not ruled out. Hyundai and Kia’s top management have already admitted that their presence in the Russian market may be limited to providing warranty and service obligations.

EUROPEANS

Swedish Volvo, British Jaguar and Land Rover continue to serve customers with “warranty” and “after-sales” support. The other dealers also work normally. A similar situation with the German Porsche. And the Bavarian BMW and the English MINI have officially stated that they will never leave the Russian market and will even bring us new models. The Japanese Infiniti and Lexus have also announced that. And what is the result? They seem to be there, but they are no longer there.

The situation with the German concern VAG, which has absorbed a whole scattering of European brands, is much more ambiguous. For example, Lamborghini, in imitation of competitors from Ferrari and Rolls-Royce, is already firmly refusing guarantees to Russian customers. It is good that Volkswagen, Audi and Skoda have not yet followed suit. But the assembly plant in Kaluga was stopped long ago, and the car production project in Nizhny Novgorod was completely liquidated. Let’s say more: VW’s supervisory board is already thinking about how to leave Russia with the fewest losses. Is it really a matter of time and is flight inevitable? I really don’t want to believe this.

As for the Stellantis alliance, which unites the brands Opel, Peugeot, Citroën and Jeep that are partly relevant to our compatriots, it is very likely that the American Jeep comes closest. First, pre-crisis sales of the brand left a lot to be desired. Second, it has no local production, and in the event of a weakening of the sanctions stranglehold, the factory would greatly help the automaker shake off and stand up. Finally, it is quite difficult to resist the pressure of the US authorities, even if you are hiding under the wings of the largest company in the world. But the same French have a machine building site. At the push of a button, it is once again ready to launch production of cars and commercial vehicles, including German Opels. On the other hand, a business and in fact a business can be easily put up for sale. And why are they worse than Renault, Mercedes-Benz and other much more persistent players from “foreign countries”?

AMERICANS

In principle, the story about American car manufacturers in Russia could have ended on the subtitle. In fact, none of the American brands work for us anymore. Fords and Chevrolets and Cadillacs have fled, leaving us only memories and maintenance problems. But don’t fret: public transport is both cheaper and friendlier. Well, the alternative, as mentioned earlier, are domestic Ladas and foreign cars from China. This is the reverse evolution…

Photo: AvtoVzglyad
Photo: AvtoVzglyad
Photo: AvtoVzglyad

While giants like Renault, Nissan, General Motors and Mercedes-Benz flee Russia, lose their slippers and prepare after them – their hair back – for the release of Toyota and Lexus, the Chinese comrades have risen at lightning speed, occupying dealers who were left to the mercy of fate, and at the same time eat an increasing share of the market. Their rapid breakthrough is made possible in particular by ‘frozen’ deliveries and inactive factories, including headliners in the market represented by Hyundai and Kia, which have long held the leadership position in the passenger car segment among foreign brands.

If we run out of foreign brands, the Russian car market will become completely Chinese. The only exception will be the LADA of Russian origin, whose only asset in the battle for the consumer will be price. Or is it too early to make such disappointing forecasts? Let’s see who else stayed in Russia, and most importantly – why.

JAPANESE

So the “Japanese” are basically gone. Mazda is discussing the possibility of selling its factory, so is Isuzu, and Infiniti has given us a full blow. Perhaps only Suzuki and Subaru were left, which had barely clung to the market with sluggish sales runs. Oh yes: Mitsubishi is still alive. But at least the latter has a factory here, which means that with favorable developments, the company can resume both production and shipment of cars to dealers quite quickly. Unless, of course, the infamous semiconductor shortage, which everyone has already forgotten, doesn’t interfere, but it, like the coronavirus, is still relevant. In any case, we can’t help but be pleased that all Japanese car manufacturers continue to provide customers with warranty and after-sales service. Special thanks to AvtoVAZ for expressing the desire to pick up Nissan customers.

KOREANS

Producers from the Land of Morning Rest have adopted a wait-and-see attitude. In order not to annoy the already angry West, they once again try not to “shine”, while the possibility of permanently stopping the sale of new cars is unfortunately not ruled out. Hyundai and Kia’s top management have already admitted that their presence in the Russian market may be limited to providing warranty and service obligations.

EUROPEANS

Swedish Volvo, British Jaguar and Land Rover continue to serve customers with “warranty” and “after-sales” support. The other dealers also work normally. A similar situation with the German Porsche. And the Bavarian BMW and the English MINI have officially stated that they will never leave the Russian market and will even bring us new models. The Japanese Infiniti and Lexus have also announced that. And what is the result? They seem to be there, but they are no longer there.

The situation with the German concern VAG, which has absorbed a whole scattering of European brands, is much more ambiguous. For example, Lamborghini, in imitation of competitors from Ferrari and Rolls-Royce, is already firmly refusing guarantees to Russian customers. It is good that Volkswagen, Audi and Skoda have not yet followed suit. But the assembly plant in Kaluga was stopped long ago, and the car production project in Nizhny Novgorod was completely liquidated. Let’s say more: VW’s supervisory board is already thinking about how to leave Russia with the fewest losses. Is it really a matter of time and is flight inevitable? I really don’t want to believe this.

As for the Stellantis alliance, which unites the brands Opel, Peugeot, Citroën and Jeep that are partly relevant to our compatriots, it is very likely that the American Jeep comes closest. First, pre-crisis sales of the brand left a lot to be desired. Second, it has no local production, and in the event of a weakening of the sanctions stranglehold, the factory would greatly help the automaker shake off and stand up. Finally, it is quite difficult to resist the pressure of the US authorities, even if you are hiding under the wings of the largest company in the world. But the same French have a machine building site. At the push of a button, it is once again ready to launch production of cars and commercial vehicles, including German Opels. On the other hand, a business and in fact a business can be easily put up for sale. And why are they worse than Renault, Mercedes-Benz and other much more persistent players from “foreign countries”?

AMERICANS

In principle, the story about American car manufacturers in Russia could have ended on the subtitle. In fact, none of the American brands work for us anymore. Fords and Chevrolets and Cadillacs have fled, leaving us only memories and maintenance problems. But don’t fret: public transport is both cheaper and friendlier. Well, the alternative, as mentioned earlier, are domestic Ladas and foreign cars from China. This is the reverse evolution…

Source: Avto Vzglyad

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