#russia

I’ve already got a custom-van project and a basket-case Toyota 20R-powered Sprite project, but what I really want is a genuine, red-flag-waving Warsaw Pact machine to cruise around Denver. I don’t mean any Lada, either— it’s got to be a genuine, designed-and-built-in-the-USSR car, not a Fiat clone! Fortunately, I have a car-freak friend in the Czech Republic who can get such a machine into a shipping container in Bremerhaven for a reasonable price, so all that would remain for me would be to negotiate the Kafkaesque maze of registering the thing in Colorado. How hard could it be?

“Russia is an up and coming country with a sudden influx of foreigners,” says my favorite mail-order bride site. “there is a great deal of fascination about foreigners.” No kidding. The world’s automakers must be on a speed-dating jaunt through Russia. Today, Reuters reports that GM and Russia’s Avtotor are in joint venture talks. The plan: At least 300,000 cars per year. It’s not all idle talk, because Valery Gorbunov, Avtotor’s chief executive, told Reuters that a JV is definitely in the cards.

It must be Russian week. Yesterday , it was Ford and Sollers (and Sollers minus Fiat/Chrysler). Today, it’s Volkswagen and GAZ going to the altar. The two plan a joint venture to produce 300,000 cars per year in Russia, The Moscow Times reports.

Fiat’s plans to build up to 500,000 Chryslers and Jeeps in Russia collapsed last week. Chrysler’s cross-town rival Ford may have had something to do with that. On Friday, Ford and Russia’s Sollers “signed a Memorandum of Understanding under which the parties intend to launch a new 50:50-owned joint venture called Ford Sollers for the production and distribution of Ford vehicles in Russia,” says a Sollers communiqué. Sollers also had been in talks with Fiat, which ended fruitless. The end of the Fiat talks were announced on the same day the deal with Ford was revealed.

While Mazda is still talking with Russian politicos about producing cars in Siberia, Toyota is doing it. Toyota “is moving into the Russian Far East ahead of other Japanese automakers as part of a high-priority effort to tap emerging markets,” at least as far as The Nikkei [sub] is concerned.

Remember Oleg Deripaska? The Russian oligarch that had been under suspicion of money laundering and organized crime activities? The very same Deripaska GM did not want to have close to Opel for fear of losing their precious intellectual property ? Yes, him. GM just handed him the blueprints and the tooling for the Chevy Aveo.

We sometimes forget that Russia is very close to Japan. So close that you can see Russia (or Japan) with the naked eye. For many years, Japan’s used cars were literally sent to Siberia, where they did, right hand drive be damned, hard duty in a climate they were not built for. Mazda is thinking of reviving the far eastern ties between Russia and Japan.

Yo, wazzup?`Want to get your hands on Russia’s first homegrown hybrid, yo? All you need to do is get yo sorry azz over to Moscow, dat Russia for you, yo. According to Itar-Tass, the Russian yo-Auto company shows their “yo” hybrid at the yo-mobile pavilion in downtown Moscow from January 2 through 11. Yo, dat’s right.

The best thing about the Soviet Corvair, aka Zaporozhets? The original idea was to rip off the design of the Volkswagen air-cooled engine for its powerplant, but Soviet engineers made their air-cooled four a V4 so that the cylinder heads would be more accessible when working on the engine in a mud-floored lean-to in Kemerovo (no doubt using tools made on the spot from melted-down kitchen utensils). So why not make a limousine version?

Russia has complained long and bitterly that Western firms refuse to share technology with its home-grown auto industry, but now the billionaire owner of the New Jersey Nets has introduced Russia’s first home-grown hybrid cars in hopes of proving that Russia can compete in the global car industry. But, according to the WSJ, the launch of the brand known as “Yo” (“ë” in Russian) was not without its problems

Mr. Prokhorov said he intends to “break the stereotype saying Russia can’t produce good cars,” even though an executive needed three attempts to successfully start the prototype car with a mobile phone using a remote-start feature.

But then what do you expect from a Russian-built prototype of a hybrid car that’s set to cost only $10k?

A few days ago the BBC reported that, officially, Russia was losing 1 trillion rubles (that’s about $32.5b to you) due to corruption. Also coming 154th on the corruption perceptions index does not help matters, either. “Gigantic sums of money are being pocketed by officials and dishonest businessmen,” said Russian President Dmitry Medvedev, “Deal with them and put them in prison – there is no other way out.” So it sounds like President Medvedev is serious about dealing with corruption. He starts with a foreign company with deep pockets: Daimler. Again?

In the car world, the BRIC countries have already got their institutional market leaders. That’s how quick these markets are moving. General Motors and Volkswagen have an iron grip on the Chinese market, Suzuki and Hyundai have India in their palms. Fiat is king in Brazil. But Russia is still anybody’s game. Well, Renault and Nissan want to change that.

The EU has ambitious CO2 targets: Less than 130g/km by 2012, less than 95g/km by 2020. Carmakers are shaking their heads: No way! Even the most electro-agnostic firms tinker with EVs (even if they are from Japan) to bring their average down. “No problem,” says a new study. The targets are a cinch to reach. What’s more, no heavy and expensive batteries to lug around. use the existing engine! No range anxiety. What is that miracle technology?

In order to produce and sell cars in China, foreign firms are required to form joint partnerships with a Chinese firm. With a ten-year, $15b government EV stimulus in the works, automakers are complaining that a requirement to build EVs in partnership with Chinese firms amounts to government-mandated barrier to market access. A foreign automaker executive complains to the Wall Street Journal that the draft version of the government plan is

tantamount to China strong-arming foreign auto makers to give up battery, electric-motor, and control technology in exchange for market access… We don’t like it.

China’s automotive market is projected to grow faster than most, and with $15b of government assistance, the Chinese government has a big carrot with which to tempt foreign firms into sharing their technology. But the backlash is already building…

PSA Peugeot, and their joint venture with China’s Dongfeng, are planning to export cars made in China to Russia, said Gregoire Olivier, Peugeot-Citroen’s recently appointed head of Asian operations, to The Beijing News via Gasgoo.

PSA wants to sell cars made at the Chinese JV in other regions of Asia and Russia as early as next year, said Olivier. The only thing that’s keeping them from doing it right now is the lack of a logistics platform. But they are building that in Shanghai as we speak, and it should be up and running next year.

Because Olivier was recently appointed, he may have missed various memos, and will be forgiven. Here a quick update: