Category: New cars

How Do We Reorganize The Auto Industry

Video: How Do We Reorganize The Auto Industry
Video: Automotive Industry lecture by Autogefuehl Thomas @ WiSo University of Cologne 2023, February
How Do We Reorganize The Auto Industry
How Do We Reorganize The Auto Industry

According to the Minister of Industry and Energy Viktor Khristenko, in 2010, Russia will produce 800-900 thousand cars of foreign brands and a little more than a million "traditional" - domestic. In assembled form, only expensive models will be imported to Russia, and less and less used ones will be imported. As a result, according to the Minister’s forecasts, in five years, the country will sell 2.6–2.8 million vehicles worth $ 31 billion.

That this is exactly what happened, under the release of "our" foreign cars summarize the legislative framework. This is the decree of the Government of the Russian Federation dated March 29, 2005 No. 166 “On Amending the Customs Tariff of the Russian Federation Concerning Automotive Components Imported for Industrial Assembly” and the joint order of the Ministry of Industry and Energy, the Ministry of Economic Development and the Ministry of Finance explaining what constitutes an “industrial assembly” and how to apply this concept in the territory of the Russian Federation.

It makes no sense to bring these documents - they are for narrow specialists. Here we only briefly outline their essence.

Duty-free (or at reduced rates) can import components only assembly plants, whose capacity is at least 25 thousand cars per year with two-shift operation. After 18 months (for existing production facilities) or after 30 months (for those created “from scratch”) they should already have their own lines for welding, painting and body assembly. Two years after the start of the assembly cycle (either welding or painting), the volumes of components imported duty-free should be reduced by 10%, after 3.5 years - another 10% and after 4.5 years - another 10%. Viktor Khristenko believes that “in this way clear incentives are given for component manufacturers” and “clarity is achieved for domestic metallurgists and chemists to bring their products in line with market requirements”.

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