Mercedes waits for Russian sales to hit 100,000 before starting local output

Article by Christian Andrei, on March 12, 2011

Before Mercedes-Benz begins production in Russia, it wants to see a significant increase in its local sales. Rivals BMW AG and Volkswagen AG have already started producing vehicles in the country.

Mercedes sales and marketing boss Joachim Schmidt told Automotive News Europe that it determined that the investment won’t pay off considering the sales volumes. Schmidt said that this year, Mercedes seeks to exceed the 19,724 cars it sold in Russia last year.

However, it added that local production would pay off "as of 100,000 units a year." According to the Association of European Businesses, BMW was Russia's top-selling premium automaker in 2010 with a volume of 20,584. It is followed by Mercedes and Audi with 18,510 units.

Despite Russia's 25% tariff on vehicles that are not built in the country, luxury brands were still able to post solid growth in 2010. BMW has a contract assembly agreement with Kaliningrad-based ZAO Avtotor, which assembled 5,544 BMWs, mainly 3 series, 5 series, X5 and X6 models, last year.

In late 2010, Audi halted the production of models at parent VW's factory in Kaluga, where VW brand and Skoda models are produced. An Audi spokesperson said that there are no plans for further production.

He said that as they expected the statutory parameters to change, the project was restricted to more or less one year from the start. This month, Russia implemented a rule that requires foreign automakers to build at least 300,000 cars a year per production site by 2015, up from only 25,000.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries