The Chinese concern Chery refused to produce cars at the site of the Ulyanovsk Automobile Plant (part of the Sollers Auto group) since UAZ has been on the EU sanctions list since June. On August 26, Vedomosti writes about this, citing sources.
According to them, the Chinese can choose another Sollers site, for example, in Yelabuga or Vladivostok, but it is not clear how to receive state support in this case: all market participants have already signed special investment contracts and cannot change the contractor. Another option for Chery is without the participation of Sollers Auto, for example, buying assembly facilities from an outgoing Western automaker.
One of the major dealers told the publication that Chery has recently been “extremely reluctant” to ship products, reducing the volume of supplies by one and a half times. Most likely, Vedomosti notes, the concern will produce cars in Russia, not under the main brand, but under the sub-brands Exeed, Omoda, or Jeter.
The issue of joint production of cars by Sollers and Chery on the basis of the Ulyanovsk Automobile Plant was discussed at a meeting between Chinese President Xi Jinping and Russian President Vladimir Putin on February 4, 2022. Later, the press service of Sollers TASS confirmed that the companies are negotiating on joint production and development of new technologies in the field of electric transport.
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