RUSSIA: GAZ Group parent calls for swift interest rate action
GAZ Group's parent is calling for urgent action to be taken concerning Russian interest rates in order to target finance more directly.
"We have to get competitive rates, Russian banks need to get money into areas where we need it," Wolf told a group of international media including just-auto, at the Nizhny Novgorod plant.
"9%, 10%, 11%, interest rates, we can not be competitive. On an international basis, it is 4% and I am going to compete with this? This is my biggest issue.
"We have positive signals, but I hope it goes a bit faster. We have to be competitive and competitive means we have to have competitive interest rates. I am very nervous about high interest rates here in Russia."
Despite his concerns, Wolf lauded the prospects of the Russian market for GAZ, which as well as working with GM, also produces vehicles for Volkswagen and Skoda. The former co-CEO of Magna International also highlighted the involvement of tycoon, Oleg Deripaska in the business.
[By] "2020, Russia should be one of the biggest consumer markets on a global basis," he said. "Per capita, Russia has double income than the Chinese, US$20,000 compared to US$11,000, India is about US$6,000.
"Russia was not used to entrepreneurs - the young generation brings entrepreneurial spirit. Deripaska is a prototype entrepreneur. We invested about US$500m in GAZ Group alone to get modern technology."
Russian Machines comprises the industrial and engineering assets of Oleg Deripaska's Basic Element business group and includes 26 enterprises in 14 regions across the Federation.
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 ...
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
An internal investigation into General Motors India's controversial Chevrolet Tavera multi-utility vehicle (MUV) recall has led to an additional 30-35 key executives at their Indian operations being a...
General Motors has increased to US$350m planned spending for new vehicles to be produced at its Spring Hill assembly plant in Tennessee, home to the defunct Saturn brand from 1990 to 2007....
Isuzu Motors will source diesel engines for its new Indian-made pickup trucks from General Motors in order to cut development costs....
SAIC Motor said its July auto sales rose 10.1% from a year earlier to 352,983 vehicles, following on from a 14.4% year on year rise in June and a 10% gain in May....
- CEO says Citroen wants to be quirky again
- Volvo's engine and platform independence progress
- ANALYSIS: VW's self-defeating defeat devices
- Advanced tech previews from OEMs - PLDB
- Indian summer for SsangYong - ANALYSIS
- Jaguar Land Rover expands engine plant capacity
- Takata manipulated test results back to 2000
- VW Group reins in capital spending
- Prosecutors eye VW workers for emissions tax evade
- Volkswagen making progress on diesel emissions fix
- Global light vehicle instrumentation and cockpits market- forecasts to 2030
- Global light vehicle OE shock absorbers market- forecasts to 2030
- Global light vehicle electronic braking market- forecasts to 2030
- Global light vehicle OE mirrors market- forecasts to 2030
- Global light vehicle roof systems market- forecasts to 2030