Kamaz Group and Daimler Automotive Group (Germany) plan to invest roughly RUB 100 bln. in the joint venture for production of cabin frames for new Kamaz and Mercedes model range in Naberezhnye Chelny (Tatarstan) and equipment upgrade. Wednesday, Zhanna Khaliullina, Kamaz Deputy Director General, reported to journalists that the partners will submit application for entering into the special investment contract under the project.
Andrey Vorobyev, Governor of the Moscow region, signed an investment contract for the construction of a Mercedes-Benz plant. This was reported by Mr. Vorobyev in his Instagram account.
Today, correspondents of TASS were informed by Kamaz' Press service that by late 2016, Kamaz will build its new cabin framework production unit with production there primarily scheduled to start in 2019-2020.
"By late 2016, we are planning to erect walls, roof the production unit and connect it to utilities", the Press service said. The cabin framework plant is the largest facility built at Kamaz in the last decades. The construction work occupies the area of 164 thousand sq.m. The plant will be supplying cabin framework for new model range of Kamaz trucks.
JSC Mercedes-Benz RUS has opened its new logistical center in Russia.
The new Mercedes-Benz logistical center with the area exceeding 50 thousand square meters occupies PNK Northern Sheremetyevo Park in Dmitrovskiy District near Glazovo Village (27 km from MRHW). The logistical center is designed to store Mercedes-Benz and smart spares and accessories to increase goods delivery performance. Inauguration of the new Mercedes-Benz logistical center – implies not only significant investments into the region but also creation of several hundred new jobs.
Jan K. Madeja, CEO, Mercedes-Benz RUS:
"USD 70 mm of investments into our logistical complex demonstrate strong positions of Mercedes-Benz in Russia and our faith into the country and Russian market. The brand is leading in the premium segment and we are going to improve its positions in the future. The inauguration of our new warehouse is a part of our long-term strategic plan. It would help us to improve our logistical processes in terms of spare part deliveries. It will improve our client service level, which is our priority."
Mercedes has entered the negotiation stage with the Russian government on launching car manufacture in Russia. It was announced by Jan Madeja, Director General of JSC Mercedes-Benz Rus. The date of official decision on the negotiations has not been specified yet, TASS reports.
“I can confirm that a special investment contract was filed to the Ministry of Industry and Trade of Russia for signature. The Plant should be located in the Moscow Region near Sheremetyevo. Its the Solnechnogorsk District. We hope that the contract will be signed in the near future. Since 2018 we may expect the first cars”, said Governor of the Moscow Region Andrey Vorobyov to the TASS agency.
Мercedes-Benz intends to assemble ML and GL crossovers at the Moscow Region plant. The cost of the GL crossovers of the Russian assembly will be 2,800,000 rubles, and the standard configuration of GL will amount to 4,000,000 rubles. Totally 4 models of the German brand will be assembled at the production facilities.
PJSC KAMAZ and the German Daimler car construction corporation will invest about €400 mln in a cab frame plant, Director General of KAMAZ Sergey Kogogin told the journalists at the SPIEF-2016.
“The total investment is about €400 mln. It is spread in time”, he said. Also it had been reported that the funds will be invested by the partners fifty-fifty, so, KAMAZ will invest €200 mln.
The German car construction group Daimler is conducting negotiations with the Ministry of Industry and Trade on the signature of a special investment agreement involving the production of Mercedes cars in Russia, as an official aware of the course of the negotiation told the RNS, as well as a source in the car construction industry working with the Moscow Region projects.
According to those two sources, Kamaz will be Daimler’s partner in its Russian project in Yesipovo. Daimler owns 15% of Kamaz and manufactures commercial Mercedes-Benz Sprinter cars in the Gorky Automobile Plant of the GAZ group.
KAMAZ Media Relations stated that on March 10, KAMAZ and Daimler (Germany) started construction of a plant in Neberezhnye Chelny (DK RUS) where they would jointly manufacture cabins. There are plans to launch a full-cycle production of truck cab frames for Mercedes-Benz Actros and new generation KamAZ trucks, their welding, and painting. A new plant building will be located near KAMAZ main assembly line.
Carmaker Daimler-Mercedes, one of the best-selling brands despite a serious decline in the auto market, is considering building a plant in Russia. According to Chairman Dieter Zetsche, having a share in Russia is very important for the company. He also hopes that local production will allow Daimler to take part in state procurement, which would also help the German producer establish itself locally and increase its profits. At the moment, Daimler is still choosing possible sites for its Russian facilities. In April 2015 its experts named three possible locations: St Petersburg, Kazan, and one of the cities of the Sverdlovsk region.
Daimler remains committed to adding a plant in Russia to support the 'remarkable' performance of its Mercedes-Benz brand, CEO Dieter Zetsche said.
"Yes, that is something we are pursuing," Zetsche told Automotive News Europe this week at the auto show here. The planned addition to the automaker’s production footprint comes despite a steep decline in Russian car sales. Through 11 months the overall volume in Russia was down 35 percent to 1,454,253, according to data from Moscow-based lobby group the Association of European Businesses.
Zetsche said Mercedes has done "extremely well" despite the country’s overall sales weakness. "Our market share is remarkable," he said. "But, of course, we can’t totally go against the trend." Mercedes was the top-selling premium automaker in Russia through 11 months with a volume of 38,797 units and a 2.67 percent market share. BMW's share was 1.74 percent while's Audi's was 1.60 percent. Mercedes' sales drop was less than the declines at BMW and Audi (see chart, below).
Russian media reported last April that Daimler had narrowed the possible sites for a plant to three locations: St. Petersburg, where Toyota, Hyundai and Nissan have factories; Tatarstan's capital, Kazan; or the central Russian region of Sverdlovsk.
GAZ Group has announced it has started serial production of stampings for light-duty vehicles Mercedes-Benz Sprinter Classic, launched into production at a GAZ facility under contract manufacturing agreement. Previously, body stampings for the Russian-made Sprinter Classic had been imported.
GAZ already has experience of manufacturing Daimler components: it produces Mercedes-Benz engines installed in Sprinter Classics at its Yarolslavl Motor Plant. This time, it has launched stampings production for Mercedes-Benz Sprinter and GAZ’s proprietary new product, Gazelle Next, which was first showcased in September and is to be launched into serial production this year, a GAZ Group representatives clarified to Vedomosti. According to the source, investment into the project, including new equipment and stamping assembly, totaled some 3.9bn roubles.
Prior to the new project, Sprinter Classic production was localized at approximately 40%. “Our aim is to boost the localization level to roughly 60%,” head of Mercedes-Benz Vans Volke Mornhinweg said citing a target level set out in the industrial assembly contract.
The European Commission has approved under the EU Merger Regulation the creation of a joint venture by Daimler AG, of Germany, and Kamaz OJSC, of Russia.
Daimler is active in the development, manufacture and distribution of automotive products (mainly passenger cars, trucks, vans and buses). Kamaz is active in the production of trucks, trailers, tractors, chassis, engines, power units, and multifunctional armoured vehicles. The joint venture will be active in the production of light-duty and heavy-duty trucks and in the welding and painting of truck cabins.
German carmaker Daimler has applied to the Russian city of St. Petersburg to set up a factory there, Interfax news agency reported on Thursday, citing local officials.
St. Petersburg Vice-Governor Mikhail Mokretsov has assigned a municipal investment committee to handle Daimler's bid, Interfax said, adding that the authorities had already proposed a possible site in the Russian city's southern belt.
"There are no decisions at this point about the start of local production of Mercedes-Benz passenger cars in Russia," a spokeswoman at Stuttgart-based Daimler said.
But Daimler keeps monitoring all markets, including Russia, with a view to setting up potential local capacities, she said, declining to elaborate.
Daimler is also negotiating with officials in Moscow about setting up a passenger-car factory, Interfax said, citing Russian Industry and Trade Minister Denis Manturov.
The German group presently builds trucks with Russian partner Kamaz and partners with van maker GAZ to produce Mercedes-Benz vans.
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Contact: Dr Dieter Zetsche, Chairman and Chief Executive Officer
Daimler AG is a vehicle manufacturer, mainly known for its Mercedes-Benz cars. Daimler also manufactures trucks and provides financial services through its Daimler Financial Services arm.