Eugene Gerden

Russia’s Wartime Economy Shores Up Auto Market

Dealers began complaining about Chinese automakers’ high prices for vehicles and unfavorable contract terms in the second half of 2022.

First-quarter deliveries slumped 39.2% from year-ago, but the automaker predicts full-year sales will fall no more than 30%, revived by a broadened product lineup led by the all-new XC90 CUV.

Government officials say the German automaker initially would produce components at the plant before launching vehicle production.

A spokesman for Russian automaker Sollers says the Ford Transit BEV will be built simultaneously with the diesel-powered version of the van.

The manufacturing complex is expected to comprise 21 new plants, six of which will producea cars while the remaining 15 will specialize in auto parts. GM, BMW and key suppliers are viewed as potential partners.

Automaker says Chevrolet Tracker crossover is expected to be among new models to be manufactured at the Uzbek plant.

According to automotive analysts ASM-Holding, employment in the Russian auto industry has declined 10.5% since May 2014, from 205,134 to 183,534 workers, and a new wave of layoffs may take place by the end of the year.

A Hummer BEV could help popularize electric vehicles in Russia.

Sales have jumped in part because most luxury automakers and their dealers have refused to raise prices while also offering additional benefits and incentives for customers.