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Backwards: Foreign companies linked to the auto industry are returning to Russia

  • April 22, 2022
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Fumbling around with sanctions, European companies reduced debit to credit and decided it was time to hit the road back to the Russian market. Discreetly and under statements

Fumbling around with sanctions, European companies reduced debit to credit and decided it was time to hit the road back to the Russian market. Discreetly and under statements of “forced measures”, “care for workers”, “civil use only”, conveyor belts are launched and businesses are opened. Details are on the AvtoVzglyad portal.

The amazing is close, and also “it’s never happened before, and here it is again”: After spending a month and a half in “democratic self-isolation”, foreign manufacturers of everything and anything (from sandwiches to car tires) have slowly started resume their activities on unfriendly Russian shores. So the Continental company, one of the leaders in the sublunar world in tire production, relaunched its plant in Kaluga.

Of course, the impetus so needed to restart the conveyor belt was concern for workers and the needs of ordinary people. The launch is of course temporary and does not bind any further conclusions. How else, you ask?

The Russian automotive and nearby automotive markets are disgusting and complex, we have heard this more than once from all over the country. Not only do the Russians for unknown reasons refuse to change cars every 10 minutes, they also do not want to service their “junk” with expensive and high-quality components from an official dealer. Nightmare and horror, there is no other way to say it.

Drivers use the same tires until they wear out and react with swear words to advertisements of new such wonderful and wonderful collections designed especially for our “tough conditions”. How can you live like this? To take up and give up this useless struggle for the happiness of Russian motorists, but humanity does not give. Faith in a bright future drives every day to work.

However, there is another important aspect that complements and reinforces both of the above: money. The fact is that in Russia it is profitable not only to sell, but also to produce. Cheap electricity, rent, logistics and labor lead to a very large price difference with European and American factories.

Simply put, the same tire made in Russia and the US will cost a lot different. Not in favor of the latter, of course. And this is where pure entrepreneurship begins: the entrepreneur has to choose income or fines in case of non-compliance with contracts.

Let me remind you that the same “shinniks” have long-term obligations that they have to meet, otherwise they have to pay a fine and the profit becomes a loss. One could speak of “extraordinary circumstances”, but these have not been officially announced. So let’s go back to the point two lines above.

In order to speed up the decision-making process, the legislature made an unequivocal allusion to ‘external administration’, which in Russian and to reduce the number of letters can also be called nationalization. Given the current European and American tendencies towards the complete destruction of the previously sacred institution of private property, this may well happen. Unfortunately, bad, we all learn quickly.

The conclusion is simple: we must look for exculpatory literary twists and start factories. Otherwise there is nothing to run. So there is justified optimism: many companies will very soon resume their work in Russia, because sitting behind the screen of “violation of supply chains” will not work for a long time. I feel sorry for the employees, yes.

photo of the manufacturer.
Photo by globallookpress.com

The amazing is close, and also “it’s never happened before, and here it is again”: After spending a month and a half in “democratic self-isolation”, foreign manufacturers of everything and anything (from sandwiches to car tires) have slowly started resume their activities on unfriendly Russian shores. So the Continental company, one of the leaders in the sublunar world in tire production, relaunched its plant in Kaluga.

Of course, the impetus so needed to restart the conveyor belt was concern for workers and the needs of ordinary people. The launch is of course temporary and does not bind any further conclusions. How else, you ask?

The Russian automotive and nearby automotive markets are disgusting and complex, we have heard this more than once from all over the country. Not only do the Russians for unknown reasons refuse to change cars every 10 minutes, they also do not want to service their “junk” with expensive and high-quality components from an official dealer. Nightmare and horror, there is no other way to say it.

Drivers use the same tires until they wear out and react with swear words to advertisements of new such wonderful and wonderful collections designed especially for our “tough conditions”. How can you live like this? To take up and give up this useless struggle for the happiness of Russian motorists, but humanity does not give. Faith in a bright future drives every day to work.

However, there is another important aspect that complements and reinforces both of the above: money. The fact is that in Russia it is profitable not only to sell, but also to produce. Cheap electricity, rent, logistics and labor lead to a very large price difference with European and American factories.

Simply put, the same tire made in Russia and the US will cost a lot different. Not in favor of the latter, of course. And this is where pure entrepreneurship begins: the entrepreneur has to choose income or fines in case of non-compliance with contracts.

Let me remind you that the same “shinniks” have long-term obligations that they have to meet, otherwise they have to pay a fine and the profit becomes a loss. One could speak of “extraordinary circumstances”, but they have not been officially announced. So let’s go back to the point two lines above.

In order to speed up the decision-making process, the legislature made an unequivocal allusion to ‘external administration’, which in Russian and to reduce the number of letters can also be called nationalization. Given the current European and American tendencies towards the complete destruction of the previously sacred institution of private property, this may well happen. Unfortunately, bad, we all learn quickly.

The conclusion is simple: we must look for exculpatory literary twists and start factories. Otherwise there is nothing to run. So there is justified optimism: many companies will very soon resume their work in Russia, because sitting behind the screen of “violation of supply chains” will not work for a long time. I feel sorry for the employees, yes.

Source: Avto Vzglyad

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