Russia will overtake Germany as Europe's biggest car market within two years, according to the Head of Volkswagen. Comments came as VW opened its first car plant in Russia.
It's located in the Kaluga region, about 160 kilometres from Moscow, and VW plans to use it to triple its market share in Russia to 10% in the next 3 years. Eventually 5,000 workers will build 150,000 cars a year.

The plant will build Volkswagen Passat and Skoda Octavias at first.

"We are not the first and not the last, we are coming at the right time!" observed Friedrich Lenz, the director of Volkswagen Russia.

Volkswagen sales in Russia jumped a huge 75% year on year in the first nine months of 2007.

But even with this growth, the German car giant took some outside funding to boost its production in Russia.

The European Bank for Reconstruction and Development has lent Volkswagen $US 1.12 billion for the project, the largest loan in the EBRD's history.

But Volkswagen’s Chairman Dr. Martin Winterkorn says the company’s huge investment in Russia is a two-way street, as it’ll create up to 5000 jobs in the Kaluga region.

“There’s going to be a big boost from this move for the supply and logistics industries, we’re also going to improve infrastructure and services. All these steps are very important for Russia as one of the world’s biggest car markets,” he promised.

The Russian government says by 2010 Russia will be assembling up to a million cars annually, overtaking the number of cars domestic firms produce from scratch.

And the Economic Development Ministry is not worried, in fact it supports this trend, saying assembling cars in Russia reduces the amount of vehicles imported from abroad.

The ministry is working on 20 agreements with global car makers on assembly projects and is looking for the best locations.

http://www.russiatoday.ru/business/news/17728


:cheers:

What about cars producer per capita ? I'd say Central Europe will be ahead ...

See Germany's 5,819,614 cars produced in 2006 :nuts: ...
http://acea.thisconnect.com/images/uploads/doc/pdf-EU-27%20Production-2004-2006-Yearly_OK.pdf

Germany 2006 - 5,819.614 cars
Russia 2006 - 1,498.000 cars

So "Head of Volkswagen" is on drugs ...

http://acea.thisconnect.com/images/uploads/sp/PRODUCTION_2006.pdf

Looks like someone cannot see the difference between "maker" and "market"...

Well I admit I was blinded by a waste of a thread ... I though Russia will produce something ... BTW will per capita (MARKET) be ahead of any EU country ?
There were about 50 million vehicles in Germany (2005). How many in Russia?

Looks like someone cannot see the difference between "maker" and "market"...
:lol: Russiatoday title is Car-Maker. It surely must be Market.

Btw this is just the beginning. With still over 20 carmaker agreements to sign and many are willing to take this step next year. Audi and Mercedes have plans for 2008 :cheers:

Russia will overtake Germany as Europe's biggest car market within two years, according to the Head of Volkswagen. Comments came as VW opened its first car plant in Russia.
It's located in the Kaluga region, about 160 kilometres from Moscow, and VW plans to use it to triple its market share in Russia to 10% in the next 3 years. Eventually 5,000 workers will build 150,000 cars a year.

The plant will build Volkswagen Passat and Skoda Octavias at first.

"We are not the first and not the last, we are coming at the right time!" observed Friedrich Lenz, the director of Volkswagen Russia.

Volkswagen sales in Russia jumped a huge 75% year on year in the first nine months of 2007.

But even with this growth, the German car giant took some outside funding to boost its production in Russia.

The European Bank for Reconstruction and Development has lent Volkswagen $US 1.12 billion for the project, the largest loan in the EBRD's history.

But Volkswagen’s Chairman Dr. Martin Winterkorn says the company’s huge investment in Russia is a two-way street, as it’ll create up to 5000 jobs in the Kaluga region.

“There’s going to be a big boost from this move for the supply and logistics industries, we’re also going to improve infrastructure and services. All these steps are very important for Russia as one of the world’s biggest car markets,” he promised.

The Russian government says by 2010 Russia will be assembling up to a million cars annually, overtaking the number of cars domestic firms produce from scratch.

And the Economic Development Ministry is not worried, in fact it supports this trend, saying assembling cars in Russia reduces the amount of vehicles imported from abroad.

The ministry is working on 20 agreements with global car makers on assembly projects and is looking for the best locations.

http://www.russiatoday.ru/business/news/17728


:cheers:


Wow, good for Russia:cheers:...I always envied countries which produce VW (Romania does not :ohno:).

In terms of the market power, I wouldn't say you should be so much impressed....it's just a normal thing to happen after so many decades of deprivation, EE countries compensate what they were unable to buy in a very short period...just like when you haven't had enough food for a week, you eat a lot more than the person who did have enough food for the same period. The same happened with Romania in 2007: it bought more new cars than Poland, although the population in Poland is double and salaries are also double. This was because Poland is to some extend saturated by cars because it started buying new ones a lot earlier than Romania since Poland had the average income to afford to buy a new car (about 400-500 EURO/month) some years ago.

Anyway this is proof that Russia is going to become one of the strongest economies in Europe soon.

:lol:

Btw this is just the beginning. With still over 20 carmaker agreements to sign and many are willing to take this step next year. Audi and Mercedes have plans for 2008 :cheers:

What about my question? Willl you laugh (meaning you have not got a clue) or give me an answer/source ?

What about my question? Willl you laugh (meaning you have not got a clue) or give me an answer/source ?

I don't have any news or articel about Per capita car producers :ohno:
Do some research on google. Or I will try to post some later.

I can’t give a toss of how many cars are in Russia; nor I’ll spend time to find out. But once you make a statement and waste a thread for one piece of news like … Russia to become the biggest car maker in Europe … would be smart to supply complete info; so we can have an idea - speculation or reality :nuts:

Wow, good for Russia:cheers:...I always envied countries which produce VW (Romania does not :ohno:).

In terms of the market power, I wouldn't say you should be so much impressed....it's just a normal thing to happen after so many decades of deprivation, EE countries compensate what they were unable to buy in a very short period...just like when you haven't had enough food for a week, you eat a lot more than the person who did have enough food for the same period. The same happened with Romania in 2007: it bought more new cars than Poland, although the population in Poland is double and salaries are also double. This was because Poland is to some extend saturated by cars because it started buying new ones a lot earlier than Romania since Poland had the average income to afford to buy a new car (about 400-500 EURO/month) some years ago.

Anyway this is proof that Russia is going to become one of the strongest economies in Europe soon.
You are right but I think Poland buys many second -hand cars from germany and other western countries. Poland borders on Germany and it is easy for them to buy a second hand western car then for Romanians which must pass many transit countries. That is why I always drive along so many Auto Bazar places in Poland along the german border.

Looks like someone cannot see the difference between "maker" and "market"...

"Russia to become the biggest car maker in Europe " ... and the company I suggest you www.specsavers.co.uk

I can’t give a toss of how many cars are in Russia; nor I’ll spend time to find out. But once you make a statement and waste a thread for one piece of news like … Russia to become the biggest car maker in Europe … would be smart to supply complete info; so we can have an idea - speculation of reality :nuts:

Because it is again news about Russia you don't care and this is a waste thread ok. Go troll somewhere else please :ohno:

^^ Listen dickhead ... you've mistaken me for your soviets ...

Why people like Crazy Serb or this guy here ruslan have to post a single news about some perticular project or whatever ? They want to show us how big their complexes are? Or may be pretend how big and prosperious Russia or what ever else ex-yugo country is ? I don't get it ?

I am glad Russia is moving ahead ! And i am glad we are no more in its sphere of influence too :cheers:

+1 even though i'm russian, it's becoming very annoying ...

^^ Listen dickhead ... you've mistaken me for your soviets ...

What a language :nono:
Looks like someone is pissed off or just jealous :ohno:

You are right but I think Poland buys many second -hand cars from germany and other western countries. Poland borders on Germany and it is easy for them to buy a second hand western car then for Romanians which must pass many transit countries. That is why I always drive along so many Auto Bazar places in Poland along the german border.

That's also true. We have here a law that puts an extra tax for cars according to their age (but also emmissions, engine vlume etc)....so the older the car the higher the tax...however, it is somehow an economic mechanism that when more and more people earn more than EUR 500 / month, they afford the monthly payments for a loan/leasing for an average car (about 150-250 EUR/month). This economic window of opportunity where an important part of population afford to buy new cars in a large number lasts for a few years (3-5) when salaries grow very fast. However, this economic window of opportunity cannot last too much, that is, salaries growth of 20-40% per year can only last for only a few years because it's not economically viable. After that period, salaries grow a lot slower and thus the bulk of the growth has already been transffered into buying consummer goods (like cars, electronics etc). That's why it is extremely important for multinational companies to 'catch' on that economic window of opportunity because they can sell in 3-5 years as many items as they'd sell in the next 10-15 years.

Anyway, coming back to the VW plant, it'll certainly draw at least a similar volume of investment in horizontal and vertical industries and services. So, double VW's investment to have the real figure.

Looks like someone cannot see the difference between "maker" and "market"...

Lol, the title says something and the content says something else. I first also read the article as in the title. :bash: