Kia and Hyundai in talks with IzhAvto to build cars in Russia

Article by Christian A., on September 5, 2010

Russian company IzhAvto is in talks with Kia Motors and Hyundai Motor Co. over the possibility of car assembly at its plant in the city of Izhevsk. At the start of 2009, operations at IzhAvto’s plant were stopped amid Russia's worst economic downturn in 10 years.

This plant can produce up to 220,000 cars annually. IzhAvto’s debts amount to more than 14.5 billion rubles ($498.1 million). The company is currently in bankruptcy. IzhAvto's plant, which once built cars under the Izh brand, is also where Mikhail Kalashnikov’s weapons, such as the AK-47 assault rifles, are made.

Russan state lender Sberbank holds about half of IzhAvto's debt. United Auto Group, which acts as Sberbank’s agent, is driving the project with the Korean firms, which aim to 60,000 vehicles annually.

The group's head Igor Kulgan revealed that this plant is capable of building 45,000 Kia cars and 15,000 Hyundai light commercial trucks.

Sberbank will fund the project. Russian government spokesman Dmitry Peskov said that he hopes that the talks will be successful and that, “all the terms including one on location will be agreed."

Global automakers have been enticed to go to Russia due to its combination of protectionist measures and the incentives to start local assembly lines. [via autonews - sub. required]

If you liked the article, share on:

Comments

Recommended

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
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