After Russia raised the certification standard for automobile emissions this year, the status of Chinese car manufacturers in Russian factories has received attention. Geely Automobile spokesperson Wang Ziliang, who has set up factories in a number of overseas markets, said yesterday that Geely's production in Russia's co-operation plant has been successful and that the prospect of exporting Russia to a new standard will be passed on March 15 or April 20. Another new project in Geely - the Mexico Industrial Park project is under planning and negotiation.
Li Shufu, member of the 11th National Committee of the Chinese People's Political Consultative Conference and Chairman of Zhejiang Geely Holding Group Co., Ltd., said in an interview with a Caijing reporter that due to rising costs and appreciation of the renminbi, Geely plans to gradually shift production sites to low-cost overseas regions. . Special mention is being made to the planning of a car manufacturing base in Mexico that covers an area of ​​about 6,000 acres.
According to information recently released on Geely’s overseas investment, “in November 2007, five companies such as Zhejiang Geely Automobile Co., Ltd. and other companies successfully bid in the bid for the project organized by the Ministry of Commerce in Mexico’s overseas cooperation zone. These five companies will be responsible for the construction. Mexico, China (Ningbo) Geely Industrial Economic and Trade Cooperation Area."
Wang Ziliang said that at present, the Mexican project is just beginning to be planned, with Geely's entire vehicle industry as its mainstay. However, this investment has not yet been identified. "The start of construction is still early!" Other overseas factories are progressing smoothly.
Geely's published corporate strategy shows that by 2015, 2/3 of sales will come from overseas markets. Last year, there was significant progress in international cooperation. It signed a contract with Russia's ROLF Corporation for a vehicle supply contract worth US$1.5 billion. Geely completed the assembly of SKD parts in Ukraine and successfully went offline, and the CKD assembly project of the Freedom Ship officially settled in Indonesia. In addition, the acquisition of British Manganese Bronze Company and the co-production of Geely’s classic taxi, the British Dili, have also been established. The cooperation model TX4 is expected to go offline within the year.
From January 1 this year, Russia will implement Euro III standards for imported cars. China's autos (mainly commercial vehicles) have been severely limited in exporting to Russia due to their failure to obtain Russia Euro III quality certification in advance. All automobile manufacturers are actively striving to obtain Russia-EU III quality certification as soon as possible.
“Our Geely ships and King Kong have passed new certifications. The Geely Technology Department is testing the prospects based on the new certification standards. The results will come out on March 15 or April 20. There is no problem with the Russian certification.†Geely Meijiafeng, the company responsible for exports, said.
Chen Anning, director of Ford’s entire vehicle business, said that although the emission standards of the Russian market have reached the Euro III standard three years after Western Europe, they are already scheduled to implement Euro IV standards in 2010. Russian consumers’ recognition of technology and brand will be Chinese vehicles. The enormous challenge facing enterprises in entering the Russian market.
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