Avtotor

Avtotor(Russian:Автотор) is anautomobile manufacturingcompany located inKaliningrad Oblast,Russia.Avtotor was established in 1996. By 2008, it was one of the largest producers and assemblers of cars in the world.Industry publicationAutomotive Manufacturing Solutionsestimates the company's revenue for 2011 at 4 billion euros and total employees at 3,500,although credit rating agency Expert estimated total revenue in 2017 at $689 million.In 2022, the company's revenue amounted to 9.5 billion rubles.In May 2022, due to Western sanctions imposed in response to the war unleashed by Russia in Ukraine, the plant stopped production and went into downtime.

Avtotor

Company type	Public company
Industry	Automotive
Founded	1996(1996)
Headquarters	Kaliningrad,KGD , Russia
Products	Cars
Revenue	$689 million(2017)
Net income	208,000,000,000 Russian ruble
Number of employees	2,100(2015)
Website	avtotor.ru

History

Avtotor was founded in 1996 by a group of investors, led by current majority owner and chairman of the board of directors,Vladimir Scherbakov,former Deputy Prime Minister of theUSSRand Chairman ofthe State Committee for Labour and Social Problems.

With an investment of $130,000,000, an assembly plant was installed in an unoccupied shipyard in Kaliningrad, with an original plan to produceNissanautomobiles. The name of the company is aportmanteauof "auto" and theGermanword "tor", meaning "gate". In 1997, the new plant also began assemblingKiaautomobiles.

In the aftermath of the1998 Russian financial crisisand the ensuing drop in automobile sales, the company found itself in a difficult financial position. To mitigate the consequences of the crisis, the company changed its business model. The company secured a contract with BMW to become a licensed importer for the German automaker.Later, the company began a partnership withGeneral Motors,starting full-scale assembly on theChevrolet Lacetti.

Cooperations

Dongfeng Motor Corporation

In September 2022, the company began the production of thecommercial vehicleDongfeng truck, with a capacity up to 3.5 tonnes, and in 2023, of the trucks Dongfeng HD-170 and HD-120.In March 2023, the company started the assembly of the Dongfeng van, and in July 2023, of Dongfeng Passenger car.In October 2024, the Dongfeng Bus was added to the line-up.

Jiangling Motors

JMC was the initial licensor for Avtotor's manufacturing, and the plant has produced more than 240,000 vehicles for JMC.

Among the models produced at Kaliningrad are JMC Trucks

In February 2024, Avtotor started production on theAmberavto A5.

NAC

In June 2005, Avtovar collaborated with NAVECO, part of theNanjing Automobile Corporation,to produce Avtotor-Trucks starting with theYuejinline up, a broad range of low-bed delivery trucks with a payload of 0.8 tonnes to 24 tonnes.

Former cooperations

BMW

BMW X6

Production of BMW vehicles began in August 1999 with theBMW 5 Series (E39)and7 Series.In the first year, Avtotor produced 555 cars.In March 2001, the factory began producing theBMW 3 Series (E46),and later, the new5 Series (E60).

In July 2009, Avtotor increased the capacity of the plant and began production of the crossoversBMW X5andX6.At the end of May 2010, the company announced the start of assembly on the newBMW 5 Series (F10)for the Russian marketfrom kits received from Germany.

The BMW line-up produced in Kaliningrad has expanded over time with the following models:E65/66 (7 Series),F01/F02 (7 Series),E90 (3 Series),E70 (X5),E71 (X6),E83 (X3)andE84 (X1).

In May 2015, BMW released a statement postponing the decision to invest in another plant in Russia due to economic uncertainty in the country.There have been rumors in the media about the quality of Russian made BMWs.These vehicles also did not have factory and manufacturer warranties, unlike their German-made counterparts.

Chery Automobile

Main article:Chery

Cherycar assembly in the Kaliningrad factory began in 2006. Chery car sales began in Russia in May 2006.

In the first six months of 2007, 18,558 vehicles were sold (of whichAmulet- 10,119,Tiggo- 4,986,Fora- 2,596,QQ- 825, Oriental Son - 32), allowing Chery to take 12th place in the overall ranking in terms of sales in Russia. In 2007, in Russia, it sold 37,120 Chery cars. The factory produced 40,000 Chery cars that same year fromsemi-knocked-downkits.

In March 2008, Avtotor stopped assembling cars for Chery.The main cause being the fear that the government would deprive the factory of its privileges enjoyed under theSpecial Economic Zone,such as duty-free import of components.

General Motors

In August 2003, Avtotor andGeneral Motorssigned a set of agreements on the organization of production of GM vehicles at the Kaliningrad plant.

In August 2004, the Kaliningrad plant started production of theChevrolet TrailBlazerandChevrolet Tahoe,and in October 2004, of theHummer H2.

In July 2005, theCadillac CTS,SRXandSTSjoined them.

On 21 November 2008, production of theChevrolet Lacettibegan in full cycle, including welding and painting. This investment in the organization of the production on the part of GM in Avtotor amounted to 80 million euros.

The other models produced at the Kaliningrad plant included theCadillac Escalade,theChevrolet Aveo,Epica,Malibu,Orlando,Captiva,and theOpel Astra,Zafira,Meriva,Insignia,Mokka,andAntara.

Since the existence of the project, Avtotor has produced over 362,000 cars for GM's brands.General Motors discontinued its partnership with Avtotor in 2015, citing poor economic outlook in the country.

Hyundai Motor Company

In September 2012, the company began the production of the commercial vehicle Hyundai HD-78, with a capacity up to 3.5 tonnes, and in 2013, of the trucks Hyundai HD-170 and HD-120.[9] In March 2013, the company started the assembly of the Hyundai i40 sedan and wagon, and in July 2013, of the brand's flagship, the Hyundai Equus.[10] In October 2015, the Hyundai Elantra was added to the line-up.[11]

Kia Motors

Kia was the initial licensor for Avtotor's manufacturing, and the plant has produced more than 240,000 vehicles for Kia.[12]

Among the models produced at the Avtotor plant are the Clarus, Rocsta, Avella, Besta, Pregio, Carnival I, Carnival II, Carnival IV, Rio I, Rio II, Opirus I, Opirus II, Magentis I, Magentis II, Carens I, Carens II, Sportage I, Sportage II, Sportage III, Ceed, Soul, and Mohave.[12]

In February 2016, Avtotor started production on the Kia Optima.

Awards and recognition

• In 2006, Avtotor was ranked 69th inForbesmagazine's list of the 200 largest private companies in Russia

Controversy

• In 2012, Avtotor formed a partnership with Magna International, a Canadian auto-parts company.Vladimir Shcherbakov released a statement that the Canadian government had pressured Magna International into ending the partnership. A spokesperson for Magna denied the allegations.

External links

• Official website