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Why is the Hyundai plant in St. Petersburg actually being sold to Kazakhstan?

  • February 28, 2023
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The Hyundai plant in Sestroretsk, Leningrad region, which has been shut down for almost a year, may receive a “new residence permit”: active negotiations are underway to move

Why is the Hyundai plant in St. Petersburg actually being sold to Kazakhstan?
The Hyundai plant in Sestroretsk, Leningrad region, which has been shut down for almost a year, may receive a “new residence permit”: active negotiations are underway to move the plant to Kazakhstan, where, as you know, there are no sanctions or restrictions. What will become of it and who will benefit from such a “relocation”? The answers to these and other questions are contained in the material of the AvtoVzglyad portal.

Since the beginning of the CBO, the conveyors of all foreign brands in Russia have stopped one after the other. Someone immediately slammed the door, and someone was in no hurry to chop off their shoulders, talking about logistical falsehoods that they could not solve in 12 months. The Koreans, on the other hand, were “the loudest” and even tried to reach an agreement with Washington, but the politicians proved incapable of negotiating. As a result, Chinese cars are made in Kaliningrad, and tumbleweed and cloth are made in the Leningrad region.

To compensate somewhat for the stoppage and not go “to the USA”, as Nissan did, bodies for Solaris were riveted at the Sestroretsk plant, which were later sent to Kazakhstan for later assembly. Logic dictates that it is time to move the entire enterprise. Well, or at least for a loud statement about work in this direction.

Officially, no one has spoken out yet, but there are already rumors that the Russian authorities are actively negotiating with Kazakhstan about the sale of the plant. An assembly plant is not a car or even an apartment, so the deal is formalized at the state level. And appointments that are backed up on paper, such as SPIKs, have not been cancelled.

Of course, the details will be as and when required, but it will not surprise anyone if there is a clause about the possibility of redemption within 5 years in the papers, as was the case with many other plants. Simply put, the solution is temporary, everyone understands this, but you have to follow the instructions and save face. But another, much more realistic outcome of the processes described above is also possible.

Why are such procedures really carried out and why do rumors come from high offices? Of course, the manufacturer is not interested in leaving a lucrative market in which it has achieved fantastic success thanks to an equally fantastic investment. The Koreans have invested billions in Russia by building conveyor belts and establishing a dealer network. And how much was “poured” into the endless and abysmal marketing!

However, the political situation dictates his will: the higher powers urgently demand to “turn the shop.” However, no one argues that this process should be immediate: you can search for “partners”, negotiate, find and discuss options for a long time, hiding behind the desire to save money from investors. And so – to infinity. Or rather, until the “Eye of Mordor” doesn’t turn the other way, distracted by other, more action-packed news.

Playing for time, bureaucracy and endlessly wrapping negotiation processes – this is mainly the policy of Korean distributors in Russia. The silence of still functioning offices, and the fullness of dealerships, and the preservation of warranty obligations, and even a thin trickle of new cars that no, no, but show up in showrooms fit into this design. But the sale of the plant to Kazakhstan does not fit in any way. But to promise, as we all know, does not mean to get married.

Photo: Hyundai

Since the beginning of the CBO, the conveyors of all foreign brands in Russia have stopped one after the other. Someone immediately slammed the door, and someone was in no hurry to chop off their shoulders, talking about logistical falsehoods that they could not solve in 12 months. The Koreans, on the other hand, were “the loudest” and even tried to reach an agreement with Washington, but the politicians proved incapable of negotiating. As a result, Chinese cars are made in Kaliningrad, and tumbleweed and cloth are made in the Leningrad region.

To compensate somewhat for the stoppage and not go “to the USA”, as Nissan did, bodies for Solaris were riveted at the Sestroretsk plant, which were later sent to Kazakhstan for later assembly. Logic dictates that it is time to move the entire enterprise. Well, or at least for a loud statement about work in this direction.

Officially, no one has spoken out yet, but there are already rumors that the Russian authorities are actively negotiating with Kazakhstan about the sale of the plant. An assembly plant is not a car or even an apartment, so the deal is formalized at the state level. And appointments that are backed up on paper, such as SPIKs, have not been cancelled.

Of course, the details will be as and when required, but it will not surprise anyone if there is a clause about the possibility of redemption within 5 years in the papers, as was the case with many other plants. Simply put, the solution is temporary, everyone understands this, but you have to follow the instructions and save face. But another, much more realistic outcome of the processes described above is also possible.

Why are such procedures really carried out and why do rumors spread from high officials? Of course, the manufacturer is not interested in leaving a lucrative market in which it has achieved fantastic success thanks to an equally fantastic investment. The Koreans have invested billions in Russia by building conveyor belts and establishing a dealer network. And how much was “poured” into the endless and abysmal marketing!

However, the political situation dictates his will: the higher powers urgently demand to “turn the shop.” However, no one argues that this process should be immediate: you can search for “partners”, negotiate, find and discuss options for a long time, hiding behind the desire to save money from investors. And so – to infinity. Or rather, until the “Eye of Mordor” doesn’t turn the other way, distracted by other, more action-packed news.

Playing for time, bureaucracy and endlessly wrapping negotiation processes – this is mainly the policy of Korean distributors in Russia. The silence of still functioning offices, and the fullness of dealerships, and the preservation of warranty obligations, and even a thin trickle of new cars that no, no, but show up in showrooms fit into this design. But the sale of the factory to Kazakhstan does not fit in any way. But to promise, as we all know, does not mean to get married.

Source: Avto Vzglyad

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