One of many ways China benefits from the war in Ukraine.
(Translated from German)
Chinese apparently use VW and Mercedes plants in Russia
The carmaker Chery manufactures its cars in former factories of German competitors. The reason is Russian punitive tariffs to force production into its own country.
11.10.2024 - 07:27 o'clock
 Chery cars are unloaded at the port of Vladivostok. Photo: IMAGO/ITAR-TASS
Moscow. According to insiders, the Chinese carmaker Chery uses former plants of Western competitors in Russia to build its vehicles. The company assembles the cars in facilities that were operated by Volkswagen, Mercedes-Benz and Nissan five people familiar with the process told the Reuters news agency.
Among others, the SUV Tiggo and vehicles of the Chery brand Exeed rolled off the assembly lines. The largest Chinese exporter probably wants to expand its Russian business in view of the market weakness in China and benefit from underutilized production capacities.
Chery explained that it would supply the Russian market with vehicles. There are no plans to build or buy their own plants. The company did not respond to a question about the assembly in the three former Western plants.
After the withdrawal of Western carmakers from Russia, Chinese manufacturers have taken over more than half of the Russian car market. The fact that they are now also expanding production shows how Chinese influence on the Russian economy has increased after the start of the war.
"Sales growth at more than 100 percent"
The government in Moscow has recently imposed import tariffs to motivate foreign carmakers to build the vehicles in Russia. According to documents from February to August obtained by Reuters, Chery has received approval for the production of some models in Russia.
The former VW plant in Kaluga, south of Moscow, is used, among other things, for the Tiggo, said Mikhail Pogonov, responsible for Chery vehicles at the car dealer ASC. Sales of the vehicles are currently picking up significantly.
"Sales growth is already more than 100 percent," he said. At the former Nissan plant in St. Petersburg, the Tiggo is manufactured under the brand name Xcite X-Cross, as one of the insiders said. The Xcite brand was celebrated as the "best new brand" at the end of September. A Chinese car was launched under a Russian brand name as early as the end of 2022, when the Soviet brand Moskovich was revived by the Chinese manufacturer JAC, according to insiders.
Russian government and Chery did not want to make the production public
One of the insiders said that Chery and the Russian government are interested in making as little public as possible about production in Russia. A Chery spokesman in Frankfurt said the Russian business had nothing to do with the European expansion plans. The responsible Russian ministries did not respond to the request for comment.
Just last week, the EU states cleared the way for punitive tariffs on electric cars from China, which are to come into force at the end of October, but at the same time showed themselves open to a negotiated solution. The EU Commission accuses China of lowering the price of vehicles through massive state subsidies and thus distorting the market. To avoid the tariffs, some Chinese manufacturers are planning to set up production in Europe, including Chery. |
