Category: Russia

By on November 9, 2010

Localities may one day issue tickets for the crime of driving under the influence of alcohol (DUI) by mail. The Russian firm Laser Systems has developed Alcolaser, a device that uses lasers to remotely detect the presence of alcohol vapors in an automobile. The Alcolaser is available in either in the form of a handheld gun the size of a police radar or in a mounted version designed to work from a moving police car.

The device takes about half-a-second to scan an automobile. According to the manufacturer, the laser has a range of 65 feet and can test vehicles moving at up to 75 MPH. Laser Systems claims that Alcolaser can detect amounts as small as a quart of beer or 3.5 ounces of vodka without being fooled by other sources of ethanol that might be present in a passenger compartment.

Read More >

By on November 3, 2010

In the car world, the BRIC countries have already got their institutional market leaders. That’s how quick these markets are moving. General Motors and Volkswagen have an iron grip on the Chinese market, Suzuki and Hyundai have India in their palms. Fiat is king in Brazil. But Russia is still anybody’s game. Well, Renault and Nissan want to change that. Read More >

By on September 20, 2010

In order to produce and sell cars in China, foreign firms are required to form joint partnerships with a Chinese firm. With a ten-year, $15b government EV stimulus in the works, automakers are complaining that a requirement to build EVs in partnership with Chinese firms amounts to government-mandated barrier to market access. A foreign automaker executive complains to the Wall Street Journal that the draft version of the government plan is

tantamount to China strong-arming foreign auto makers to give up battery, electric-motor, and control technology in exchange for market access… We don’t like it.

China’s automotive market is projected to grow faster than most, and with $15b of government assistance, the Chinese government has a big carrot with which to tempt foreign firms into sharing their technology. But the backlash is already building…

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By on September 13, 2010

PSA Peugeot, and their joint venture with China’s Dongfeng, are planning to export cars made in China to Russia, said Gregoire Olivier, Peugeot-Citroen’s recently appointed head of Asian operations,  to The Beijing News via Gasgoo.

PSA wants to sell cars made at the Chinese JV in other regions of Asia and Russia as early as next year, said Olivier. The only thing that’s keeping them from doing it right now is the lack of a logistics platform. But they are building that in Shanghai as we speak, and it should be up and running next year.

Because Olivier was recently appointed, he may have missed various memos, and will be forgiven. Here a quick update: Read More >

By on September 4, 2010

A few days ago, TTAC reported that Vladimir Putin issued an ultimatum to foreign car makers, “invest here or else”. 4 days later, VW announced that they were planning a new assembly line at GAZ, and more capacity at their Kaluga plant in Russia. Coincidence? Probably. But it seems like others are following suit. Pretty bloody quickly. Read More >

By on August 30, 2010

Mr. Putin must be reading TTAC. Barely did we report that the Russian market is coming back to life, Vladimir Putin stepped in front of the cameras in Moscow, and announced killer measures to put the Russian auto market back into its place.

In a speech today, Putin announced that import tariffs for new cars will be increased “step by step.” He didn’t mention any numbers or dates, but the buyers  of that  Mulsanne better hurry. And it’s not that importing cars to Russia is particularly cheap right now. Currently, there is a 30 percent import duty on any new car. Smug Vladimir said that Russia is not part of the WTO, so they can put their import duties as high as they damn please. Read More >

By on August 30, 2010

The fate of the car industry depends highly on the price of oil. Higher oil prices, lower car sales. Lower oil prices, higher cars sales. Everywhere but Russia.

Russia’s main export is energy. Oil and gas. When oil climbed, the Russians were rolling in money and bought cars like crazy. Then came 2008. Oil crashed. The market crashed. Russian oligarchs went bankrupt. The car market followed. Unit sales of passenger cars dropped 50 percent last year. The annual Moscow Motor Show was cancelled. Automakers were worried about their investments into the Russian market. The Russians tried to protect their industry, raised import tariffs. The market plummeted more. Now, all of this is ancient history. Read More >

By on August 28, 2010

Nearly every manufacturer out there is making a cheap car for the emerging markets. Renault has the Logan, Toyota has the Etios, Tata has the Nano and Ford has the Figo. The reasoning is pretty clear. In order to grow in these markets, you need to offer something that provides a painless upgrade path from a motorcycle to something with four wheels and a roof over your head. When makers like Renault, Ford and Toyota make an offering of this nature, you get the impression that there will be a certain level of quality in the car. Maybe not up to the level more mature markets are used to, but the standards will be high. That comes with a price. Now what if I told you that a certain car maker who is globally known for producing piles of cheap junk is making their own cheap car for emerging markets? What level of quality do you think that cheap car will have? Read More >

By on August 26, 2010

Did we say that the Russian market is on the rebound with a vengeance? Nissan agrees. Nissan will raise its Russian auto sales target for fiscal 2010 to 100,000 units, up 120 percent from last fiscal year, COO Toshiyuki Shiga told The Nikkei [sub] today. Nissan’s SUVs are selling so briskly that Nissan has trouble keeping up with the demand. Read More >

By on August 25, 2010

The BRIC countries, Brazil, Russia, India, and China were long seen as the saviors of the world, especially when it comes to cars:  large population, very few cars per head, a strong growth. Then 2008 came around, the oil prices dropped, and Russia nearly imploded. Russia was taken off the BRIC list, leaving a BIC behind. If you take a hard look at it, it’s a C, with a BI as future growth market. Now suddenly, the BRIC is back. Read More >

By on June 30, 2010

You take some of my rescued state-owned automaker, and I’ll take some of yours. That seems to be the cunning plan cooked up by presidents Putin and Sarkozy, as the two face the prospect of rescuing struggling firms in the midst of a weak European market. And actually, it seems that the idea was really Putin’s. French-owned automaker Renault is “more than happy” with its 25 percent stake in the moribund Russian automaker AvtoVAZ, reports Bloomberg, but Russia is offering to buy 15 percent of the French firm if France in turn takes on more AvtoVAZ equity. Considering that Reanult paid $1b for 25 percent of a firm that has been kept alive only by government intervention, a closer embrace of VAZ does not seem advisable. Nor, frankly, does any form of “Franco-Russian Leyland” sound like a good idea.

Read More >

By on June 6, 2010

There’s no doubt that cars can be time machines… but so can cameras. These pictures of the LUC Chopard classic car rally in Moscow were taken a week ago today, but thanks to the impeccable cars, time-warp setting and old-school photo techniques, they somehow manage to capture the flavor of a lost era. Even when a blinged-out Infiniti QX intrudes, reminding the viewer that these are just a bunch of plutocrats playing with their expensive toys circa 2010. As is so often the case, the fantasy is far more satisfying than the reality. It’s Sunday… why not indulge a little?

[Courtesy: EnglishRussia, Hat Tip: commenter rodehardputupwet]

By on June 3, 2010


Designing a product for local tastes is a tricky affair. Just getting the name right is a hassle. Everyone remember the Toyota MR2? Not the French. They remember the Toyota MR. Why? Because “MR2” in French would have sounded like “Em-Ar-Deux” (“Deux” being French for “two”). And “Em-Ar-Deux” sounded very close to “merde” which is French for…..let’s not go into that. So, if getting the name right is a chore, you must do your car research with care  if you want to pander to local needs. I mean, get that wrong and you could end up in deep Em-Ar-Deux. But Volkswagen reckons they’ve found what the Russians want … Read More >

By on April 30, 2010

To stay alive, Opel wants to scale down. The factory in Antwerp is being closed. With amazing results for Opel’s bottom line: Closing the factory costs GM around €400m ($532m) in termination benefits. GM and the unions reached an agreement on the termination benefits earlier this week, reports Reuters. There are 2,600 workers in Antwerp. Now do the math: $532m divvied up amongst 2600 workers is a little bit over $200,000 per worker. Ouch! Wait, there is more pain … Read More >

By on April 29, 2010

Have you ever done serious business in Russia? Nyet? If you want to keep your conscience pure, don’t. It’s a “gotta pay to play” country. If you don’t make regular payments, the best that can happen to you is that you are out of business. In more serious cases, you pay with your life – a common currency in that country.

Behind that backdrop, it’s humorous to read that “the Russian Prosecutor-General’s Office has asked the United States to provide information about corruption that reportedly accompanied the sale of Mercedes limousines by Russian law enforcement agencies, Prosecutor-General Yuri Chaika told the Federation Council.” That according to Russia’s news agency ITAR-TASS. (It’s “sale to law enforcement agencies.” Someone with lesser English may have made a payment. See video.) Read More >

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