RUSSIA: GAZ 'not going near' to buying in European automotive: Deripaska
Deripaska's comments follow last November's agreement between Russian Railways (RZD) and PSA Peugeot Citroen subsidiary, Gefco, to acquire 75% of the logistics division in an EUR800m (US$1.07bn) deal.
"I would not advise GAZ to buy at the moment in European automotive," Deripaska told just-auto from Moscow. "There is of course, critical components Russia needs, but with the high Euro, we need to be practical.
"High Euro and issues with the labour market in Europe - I would not believe we go near to buy something in Europe at this moment."
RZD president, Vladimir Yakunin, said the rail operator's move into Gefco would drive the development of freight activity between Asia and Europe, with Russia, Belarussia and Kazakhstan expecting to form a common rail logistics business.
Deripaska insists his focus lies closer to home despite the domestic challenges of high interest and capital costs and will look at existing capacity.
"We have high cost of capital and high interest rate, which creates advantages for importers," he continued to just-auto. "Our main focus is to utilise our capacity.
"I could not say for our products and our customers we can add anything significant by buying operations in Europe. We would rather add Asia with available capital and finding cheap inner cost."
GAZ - part of Russian Machines and Basic Element - started Chevrolet's Aveo production last week at its Nizhny Novgorod facility 250mi east of Moscow and also produces vehicles for Volkswagen and Skoda.
General Motors and GAZ Group inked the deal in 2011 to produce the Aveo in Russia, with the companies investing US$29m to ramp up the existing Nizhny Novgorod passenger car production facility.
This QUBE report from just-auto provides a comprehensive overview of the global diesel technologies sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use this repor...
This QUBE report from just-auto provides a comprehensive overview of the global electrified vehicles sector, major OEM developments, top 14 markets, technology trends and market projections. Use this ...
Iran Khodro (IKCO) says it is hopeful Iran's recent election of a new President will allow more partners - as well as its old Renault and Peugeot business allies - to have full operations in the count...
New car sales in France nudged up 0.9% in July, prompting industry association CCFA to suggest that the collapse in sales was nearing an end. It was the first monthly increase since October 2011....
PSA has unveiled first half group revenue of EUR27.7bn (EUR36.8bn), down 3.8% compared to the same period last year, while automotive division revenue also fell 7.5% to EUR18.7bn....
- ANALYSIS: Hyundai axes Veloster, goes after Toyota
- Review of 2014 (1)
- ANALYSIS: Future models for North America - Part 2
- THE WEEK THAT WAS: Bleak Christmas ahead for some
- ANALYSIS: Future models for North America - Part 1
- Ford union to block "even a screwdriver" at Genk
- JLR research removes blind spots
- Genk mayor organises "loudest shift" as Ford exits
- NHTSA lists Ford, Jaguar and Porsche recalls
- Bye, Chrysler, hello FCA US