GAZ Group’s parent is calling for urgent action to be taken concerning Russian interest rates in order to target finance more directly.

Russian Machines chairman, Siegfried Wolf, made the comments as its GAZ Group automotive division started production of General Motors’ Chevrolet Aveo at its Nizhny Novgorod plant last week.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

“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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
[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.