Russia’s Taganrog Automobile Plant (TagAZ) is stopping production of Hyundai vehicles, business daily Vedomosti reported, citing a source at the automaker.
TagAZ has already stopped assembling Hyundai Porter trucks and Sonata sedans, the source said, adding that the plant is producing vehicles only from kits that remain at its warehouses.
TagAZ is continuing talks with Hyundai and no final decision has been made yet, TagAZ representative Yelena Larina told the daily. She did not rule out that TagAZ could stop producing Hyundai cars.
For several years, low cost Hyundai models have accounted for the bulk of TagAZ’ sales. TagAZ sold 106,322 vehicles in 2008 and five Hyundai models accounted for 95% of the sales.
The main reason for the possible end of production of Hyundai cars at TagAZ is Hyundai’s own plans, an employee at TagAZ told the daily. The carmaker plans to launch a car plant in St. Petersburg in January 2011 and is also considering other production sites, such as IzhAvto, the daily said.
Established in 1997, Rostov Region-based TagAZ has assembled Hyundai vehicles under licence since 2001. It started production of cars under its own brand in 2009.