• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • Lucid Turns to The Dark Side
  • Ford Hikes F-150 Lightning Prices as Much as $7,000
  • 2023 Honda Pilot TrailSport Does a Where’s Waldo Impression
  • EVs, Executives and More on the Latest Headlight News Podcast
  • Tesla Accused of False Advertising by California DMV
  • FTC Proposes Crackdown on Shady Auto Dealer Practices
  • Tesla Overtakes Mercedes-Benz in Europe
  • Two Years Late, Tesla Cybertruck Will Now Cost More
  • U.S. Senate’s Inflation Reduction Act Reinstates EV Tax Credits — With Limits
  • The Rearview Mirror: The Death of a Japanese Rebel
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Kia Sportage Hybrid EX AWD
    • A Week With: 2022 Volkswagen Golf GTI 2.0 Autobahn
    • A Week With: 2022 Infiniti QX60 Luxe AWD
    • First Drive: 2023 Genesis G90
    • A Week With: 2022 BMW M4 Competition xDrive Convertible
    • A Week With: 2022 Jaguar F-Pace R Dynamic S
    • A Week With: Genesis GV70 3.5T AWD Sport Prestige
    • First Drive: 2022 Mercedes-Benz EQB
    • We Drive the Record-Setting Mercedes-Benz Vision EQXX
    • A Week With: 2022 Chevrolet Bolt EUV Premier
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automobiles > Russia Continues to Attract New Auto Investments

        Russia Continues to Attract New Auto Investments

        BMI report shows Central and Eastern Europe growing.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        July 25, 2017
        Daimler and Russian officials show off the model for the new Mercedes-Benz plant just outside Moscow.

        A recovery in Russia and the Russian-leaning economies of the Commonwealth of Independent States is attracting a growing share of automotive-related investment across the Emerging Europe region, which includes Eastern Europe and Central Asia.

        “Companies are being attracted by the prospects of recovery in these markets while in other parts of Emerging Europe investments seem more focused on consolidating SUV production and meeting the demand for more complex new technologies,” according to a new report from BMI Research, a subsidiary of Fitch Group of companies.

        Global Auto News!

        BMI’s latest investment round-up of countries in the Emerging Europe region highlighted 21 new investment projects that were either announced or inaugurated in the second quarter of 2017. Reversing trends that saw investment flows into Russia slow dramatically after the 2008–09 financial crisis and hit again by the start of conflict in the eastern Ukraine in 2014. 

        Three key themes surfaced across the region, including the performance of Russia and the Commonwealth of Independent States (CIS), Volkswagen’s multi-brand SUV strategy maturing in Central and Eastern Europe, or CEE, and the rising technological capabilities of suppliers and manufacturers in CEE.

        (Nissan running with the bulls in Russia. For the story, Click Here.)

        “The most notable aspect of our investment round-up this quarter is the apparent outperformance of markets in the far east of Europe and in Central Asia, namely Russia and the CIS economies,” the report noted.

        “Of the 21 projects announced, 12 were located in Russia, Kazakhstan or Uzbekistan with at least three of these projects being valued $100 million in projects ranging from passenger cars to commercial vehicles and even electric vehicles.”

        Russian President Vladimir Putin, center, listens as Nissan executives discuss plans to add 450 workers to its St. Petersburg plant.

        “Here, we believe automakers across the spectrum are attempting to bring new or refreshed models to market to be ready to capitalize on a recovery, after low oil prices over 2014–16 sent these markets into a free fall,” the report added.

        PSA Group, which will soon take control of General Motors European assets, has been particularly prolific here, having announced its $150 million joint venture investment into light commercial vehicle production in Uzbekistan.

        This announcement not only places the company in good stead for dominating future growth in the untapped Uzbek LCV market but it also rounds off PSA’s broader regional strategy in the area. Indeed, the company’s Uzbekistan investment must also be analyzed in the context of its earlier investments in plants in Belarus (October 2014) and Kazakhstan (December 2014) as well as its current plant in Russia.

        (Click Here for details about Daimler’s new plant in Russia.)

        With all four plants the company now has a diverse and strong network across the region which will benefit the company as sales start to recover.

        Meanwhile, Volkswagen’s strategy for bringing a wider range of SUVs and crossovers to the line-ups of each of its brands is further maturing this quarter.

        Audi’s announcements for the Q8 and Q4 to begin production in Slovakia and Hungary and Skoda’s commitment to producing the new Karoq SUV at its Kvasiny plant must both be seen in the context of earlier investments like Skoda’s investment in building the Seat Ateca, Audi’s introduction of the Q3 SUV to its Hungary facility, and the decision to build Bentley Bentayga body parts in Bratislava.

        The latest investments, therefore, show a maturation of the Volkswagen conglomerate’s strategy of producing a wide variety of SUVs for all its brands while using common modular platforms and concentrating SUV production for multiple brands in each plant to find cost savings.

        In addition, BMI said new products are now being produced by CEE suppliers in line with the rise of advanced technologies.

        (To see more about how Detroit’s Big Three are dealing with adapting to a global market, Click Here.)

        For example, in line with the rise of Advanced Driver Assist Systems (ADAS), sensor demand is rising and Hella’s investment into a new sensor and electronics plant in Lithuania reflects how CEE producers are helping to supply this demand. Similarly, with the rise in electric vehicles, demand for battery components is rising, prompting companies like Shinheung SEC to set up production activities in the CEE region.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        Lucid Turns to The Dark Side

        Today

        Ford Hikes F-150 Lightning Prices as Much as $7,000

        Today
        2023 Honda Pilot TrailSport teaser REL

        2023 Honda Pilot TrailSport Does a Where’s Waldo Impression

        Today

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2022
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: