Russia revives Soviet-era Moskvich model with Chinese language mannequin By Reuters

By Gleb Stolyarov and Alexander Marrow

MOSCOW (Reuters) -After a two-decade hiatus, Russia on Wednesday launched manufacturing of the Moskvich automobile model at a plant close to Moscow given up by the French carmaker Renault (EPA:), with a brand new, trendy Chinese language design that hardly resembles the Soviet-era basic.

Whereas the final Moskvich (“Muscovite”) was a fundamental three-box saloon or pedestrian hatchback, the Moskvich 3 is a muscular-looking petrol-powered crossover hatchback with alloy wheels, LED slit-headlights and a big central touchscreen show.

Actually, the automobile seems equivalent to the Sehol X4 compact crossover made by China’s JAC, also called the JAC JS4.

Sources instructed Reuters that JAC’s design, engineering and platform had been getting used, with elements being delivered from China, and the automobiles proven on the launch displayed quite a few JAC stickers bearing half codes.

Nonetheless, Maxim Klyushkin, the plant’s challenge supervisor, declined to substantiate that the Chinese language agency was Moskvich’s associate.

“We now have (Russian truck maker) Kamaz as an exterior associate and we’ve a long-distance associate we’re working with,” he mentioned. “We’re not naming that associate.”

Klyushkin mentioned the automobile would have an anti-lock braking system (ABS), one of many options that Russia’s Avtovaz has been compelled to take away from Lada fashions due to the Western commerce sanctions imposed in response to Moscow’s navy marketing campaign in Ukraine.

Renault bought its majority stake in Avtovaz in Could to the Russian state for reportedly only one rouble, however with a six-year possibility to purchase it again. It bought its plant, now renamed the Moscow Vehicle Manufacturing unit Moskvich, for one more rouble.

FALLING CAR SALES

With simply 600 automobiles slated for manufacturing this yr, the brand new automobile is unlikely to change the gloomy outlook for the broader trade, whose annual gross sales may finish the yr under 1 million for the primary time in Russia’s trendy historical past.

The federal government’s final goal of manufacturing 100,000 Moskvich automobiles a yr, a few of which will probably be electrical, is much under the trade common for a automobile plant of 200,000-300,000. Tesla (NASDAQ:) makes 22,000 automobiles per week at its Shanghai plant.

“The primary Moskvich automobiles will come off the manufacturing line in December 2022,” Kamaz mentioned in an announcement.

Western sanctions over Moscow’s navy marketing campaign in Ukraine haven’t solely hampered entry to foreign-made parts but additionally helped to drive out international producers.

Kamaz and the federal government have established new provide chains, however not disclosed particulars.

“The duty for the close to future is to determine small-node meeting processes with the involvement of native suppliers by the top of 2023,” Trade and Commerce Minister Denis Manturov mentioned in an announcement.

The ministry mentioned the launch of full-scale manufacturing would supply jobs for round 40,000 extra folks. The automobile goes on sale in Russia subsequent month, it added, though the value has but to be disclosed. President Vladimir Putin final week urged carmakers to maintain costs down.