Brilliance China Automotive Holdings Ltd said it has signed a
contract with a Russian car maker to set up its fourth overseas
factory in order to avoid paying high import tariffs.
The move follows its deals to export 158,000 Zhonghua Zunchi
sedans to Germany and 80,000 Haise light commercial vehicles to
Russia last year as Brilliance steps up efforts to expand its
Chinese nameplate overseas.
Brilliance, based in Shenyang, capital of Liaoning Province in
China's northeast, plans to sell over 100,000 Zhonghua Junjie
sedans in Russia in the next five years after they have been
assembled in a plant owned by Russia's Irito-Invest, the company
said in a statement yesterday.
The model, powered by a 1.6-liter or 1.8-liter engine, will use
components exported from Brilliance Jinbei.
Manufacturing will start in January with sales planned to begin
in March. Brilliance aims to sell 10,000 units next year before
raising the volume to 31,414 in 2012.
The Chinese auto maker said its plan was not affected by
Russia's earlier announcement banning overseas car makers from
setting up assembly lines as Moscow wanted to protect its own auto
industry.
"By cooperating with local car manufacturers, we are allowed to
benefit from favorable tax policies on imported auto parts, which
may help to accelerate our expansion in Russia as well as in the
east European markets," Su Qingju, a company official told
Shanghai Daily.
(Shanghai Daily November 1, 2007)
