Intro: Avtotor is a wholly Russian manufacturer. It is controlled by Vladimir Scherbakov, who held key posts in the USSR, including minister of labour (1988-1990), minister of economics and planning (1990-1991) and first vice prime minister (1991).
Avtotor spent about USD 69 million to renovate a former military factory near the Yantar shipyards and produced various Kia models. In 2001 CKD assembly of the Sportage commenced, and later on other models were added to the mix.
In 1999 an opportunity was seized, as BMW looked for ways to circument high import duties on imported cars. So SKD assembly of BMW models commenced. The new 3-series (E90) was introduced in May, 2005, in addition to the 5-series and a very limited production of 7-series. Marketing is handled by a different company, BMW Russland Company.
At the 2003 Moscow Auto Show a JV with General Motors was announced. SKD assembly of the Hummer H2 commenced in December, 2003 with the Chevrolet Tahoe, TrailBlazer joining in 2004. From July, 2005 assembly of Cadillac also commenced at the Kaliningrad factory.
By mid-2005 Kia was turning away from Avtotor, which prompted the company to look for new partners. A partnership with Nanjing Yuejin and Zhongxing - two Chinese pickup truck and SUV manufacturers, were announced in July, 2005. |
