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Chronicles of deception: how the Chinese are changing the development vector of the Russian auto industry

  • April 24, 2023
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Those who do not complain about memory well remember that only six months ago the Avtotor plant positioned itself as almost a stronghold of the “green” idea. Management

Those who do not complain about memory well remember that only six months ago the Avtotor plant positioned itself as almost a stronghold of the “green” idea. Management assured that it was about to start producing electric vehicles, and in significant quantities. However, as the AvtoVzglyad portal found out, all these beautiful promises turned out to be just a smokescreen hiding real actions.

By the will of fate, the private Kaliningrad enterprise Avtotor almost from the very beginning of its activity chose a multi-brand strategy as its strategy. The assembly of screwdrivers from Kia, Hyundai and BMW cars was organized at the plant. For a while, General Motors registered there, then the Genesis brand came into the light.

Run for the ruble

When foreign brands did not renew their contracts with the company last year for obvious reasons, management had to think seriously about the future. The solution to the problem was frankly strange. The head of Avtotor, Vladimir Shcherbakov, announced that his company will now annually produce 50,000-60,000 compact electric vehicles designed for the young, the elderly and people with reduced mobility. Seven new factories will be built to support this plan.

Doubts about the viability of the project appeared simultaneously with its publication. Neither goals, nor financial possibilities, nor the intended consumer audience clearly correlated with reality. But the statement sounded extremely life-affirming and, above all, very progressive.

Partners quit

But now the period of idle talk is over – it’s time to move the bags. And the factory began to assemble screwdrivers … no, not electric vehicles at all, much needed by Russian elderly drivers. On the conveyors of “Avtotor” were products of a small Chinese company Kaiyi. The E5 golf-class sedan is not the newest car in the world and there is no petrol anywhere else. The long-term plans include three more models from the same Chinese brand, and all crossovers without exception and all without exception run on damn gasoline.

True to its multi-brand strategy, the Kaliningrad factory did not stop at Kaiyi. In April, a cooperation agreement was signed with BAIC, a large Chinese state-owned holding company. Anyone who hopes that cheerful electric youth cars will now leave the open gates of Avtotor runs the risk of being seriously disappointed. It will be the vulgar X35 petrol crossover and the U5 plus sedan again.

Avtotor management’s passion for electric traction could not be completely extinguished with two partners. And this month, the factory signed another assembly agreement. The first time he made friends with a small company, the second – with a state-owned company. Now a brand has become his partner, with a pedigree so great it’s just a sin not to tell it again.

Bad luck company

SWM was founded in 1971 by businessmen Piero Sironi and Fausto Vergani. Based in Milan, she produced motorcycles, but not for long. In the mid-1980s, the company suffered a drop in demand and was later forced to become part of the Chinese concern Shineray. The Chinese were still engaged in two-wheeled monsters for a while, but in 2016 they decided to start producing cars.

The redesigned SWM entered into an agreement with Brilliance that resulted in the X7 crossover, which debuted in September 2016. SWM production is concentrated in the city of Chongqing, and the design center is in Italy, but the cars of this brand in China are not particularly successful, despite the slight Italian flair surrounding them.

It’s hard to get rid of the thought that the simple saying “take what they give” prompted Avtotor to choose such diverse partners. However, here’s the problem. In Russia, in cooperation with SWM, it is planned to produce three crossovers: the compact G01F, the medium-sized G01 and the large G05 Pro. All three are unfortunately armed with conventional 1.5-litre turbocharged petrol engines.

Where are the promised electric vehicles?

Photo: globallookpress.com
Photo: Avtotor

By the will of fate, the private Kaliningrad enterprise Avtotor almost from the very beginning of its activity chose a multi-brand strategy as its strategy. The assembly of screwdrivers from Kia, Hyundai and BMW cars was organized at the plant. For a while, General Motors registered there, then the Genesis brand came into the light.

Run for the ruble

When foreign brands did not renew their contracts with the company last year for obvious reasons, management had to think seriously about the future. The solution to the problem was frankly strange. The head of Avtotor, Vladimir Shcherbakov, announced that his company will now annually produce 50,000-60,000 compact electric vehicles designed for the young, the elderly and people with reduced mobility. Seven new factories will be built to support this plan.

Doubts about the viability of the project appeared simultaneously with its publication. Neither goals, nor financial possibilities, nor the intended consumer audience clearly correlated with reality. But the statement sounded extremely life-affirming and, above all, very progressive.

Partners quit

But now the period of idle talk is over – it’s time to move the bags. And the factory began to assemble screwdrivers … no, not electric vehicles at all, much needed by Russian elderly drivers. On the conveyors of “Avtotor” were products of a small Chinese company Kaiyi. The E5 golf-class sedan is not the newest car in the world and there is no petrol anywhere else. The long-term plans include three more models from the same Chinese brand, and all crossovers without exception and all without exception run on damn gasoline.

True to its multi-brand strategy, the Kaliningrad factory did not stop at Kaiyi. In April, a cooperation agreement was signed with BAIC, a large Chinese state-owned holding company. Anyone who hopes that cheerful electric youth cars will now leave the open gates of Avtotor runs the risk of being seriously disappointed. It will be the vulgar X35 petrol crossover and the U5 plus sedan again.

Avtotor management’s passion for electric traction could not be completely extinguished with two partners. And this month, the factory signed another assembly agreement. The first time he made friends with a small company, the second – with a state-owned company. Now a brand has become his partner, with a pedigree so great it’s just a sin not to tell it again.

Bad luck company

SWM was founded in 1971 by businessmen Piero Sironi and Fausto Vergani. Based in Milan, she produced motorcycles, but not for long. In the mid-1980s, the company suffered a drop in demand and was later forced to become part of the Chinese concern Shineray. The Chinese were still engaged in two-wheeled monsters for a while, but in 2016 they decided to start producing cars.

The redesigned SWM entered into an agreement with Brilliance that resulted in the X7 crossover, which debuted in September 2016. SWM production is concentrated in the city of Chongqing, and the design center is in Italy, but the cars of this brand in China are not particularly successful, despite the slight Italian flair surrounding them.

It’s hard to get rid of the thought that the simple saying “take what they give” prompted Avtotor to choose such diverse partners. However, here’s the problem. In Russia, in cooperation with SWM, it is planned to produce three crossovers: the compact G01F, the medium-sized G01 and the large G05 Pro. All three are unfortunately armed with conventional 1.5-litre turbocharged petrol engines.

Where are the promised electric vehicles?

Source: Avto Vzglyad

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