RUSSIA: Ministries try to boost CKD assembly
Three Russian ministries have drafted a ruling that would encourage more complex CKD production by foreign car makers making vehicles in Russia under the industrial assembly regime, Vedomosti business daily reported Friday citing the draft ruling.
The ruling drafted by the economic ministry, finance ministry, and industry and trade ministry envisages limiting assembly of semi knocked-down kits (SKD) imported at lower rates per car producer to 20,000 automobiles annually. Complete knock-down (CKD) assembly, which includes welding and painting the car body, is not limited by the draft ruling, the daily reported, according to Prime-Tass.
Most foreign car makers assembling cars in Russia have already switched to complete knock-down assembly, however, this ruling could hurt Volkswagen, the daily reported. The plant launched complete knock-down assembly of only two out of over 20 models it assembles earlier in October. It plans to produce over 63,000 automobiles this year, the daily reported, citing the plant's spokesman.