By on February 11, 2010


Automotive News [sub] reports that Fiat/Chrysler will become the latest in a line of third-rate global automakers to form a joint venture with the Russian firm Sollers, with plans to produce half a million units of nine Fiat and Chrysler models at a new plant in Naberezhnye Chelny. Previously Sollers had formed joint ventures with such notable automakers as Ssangyong and Isuzu. Reuters reports that Russia’s state-owned banks will provide most of the venture’s $2.9b in start-up costs. But Fiat/Chrysler has a tough road ahead of it. An analyst for BrokerCreditService describes Sollers’ challenge thusly:

The main object of this plan is to take some, I think, little market share in Vladivostok and Primorsky Kray Russian region, because over 80 or 90% of cars in this region are used cars of Japanese production.

Chrysler has yet to prove that it can handle that kind of competition in the US market, and it will be interesting to see how new Chrysler models sell against the previous-generation Sebring/Stratus, which is produced in Russia as the GAZ Volga Siber.

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9 Comments on “Fiat/Chrysler Banished To Russian Far East...”


  • avatar
    panzerfaust

    Years of corporate and government employment has taught me that every institution has its Siberia. I’m sure Chrysler execs never took that literally till now.

  • avatar
    solbeam

    “third-rate global automakers”
    How is fiat/crysler a third rate automaker?
    Is it the fact that they build third rate cars like the Ferrari Enzo?
    Who would be the first and second tier?

    “third rate” and “global” is an oxymoron in and by itself.

    • 0 avatar
      AccAzda

      Most of the cars under the umbrella of FIAT got there.. because the owner either died.. or SOLD the company. And if you truly remember the path that CHRYSLER has traveled to get to this point (where they are jointly owned by the US GOVT and FIAT)..

      Chrysler WILL ALWAYS be THIRD-RATE if not BOTTOM of the RUNG automaker. There is no reason to buy from them.. if you’re not completely desperate.

      An OXYMORON is intelligent govt.

      And Global… is just sheer amount of wasted space.

      I.E GM.

      THAT IS THIRD RATE.

  • avatar
    pgcooldad

    “because over 80 or 90% of cars in this region are used cars of Japanese production.”

    I wonder if Russians in this region were notifed of all the Toyota and Honda recalls.

    The previous generation Sebring/Stratus is NOT OWNED by Chrysler. The tooling along with the design, IP, etc was sold to GAZ years ago when the new generation came about.

  • avatar
    educatordan

    Looks like that car has washers for the headlights, that’s something American cops don’t get. But strangely no push-bar.

  • avatar
    tparkit

    Hmmm… a plant in mob-run Russia, financed by Putin & Thugs Inc, staffed with Russian labor…

  • avatar
    panzerfaust

    What stood out in this article is ‘a half a million units.” To whom do they intend to sell these units to, given the population of Russia is decreasing by about a million a year?

  • avatar
    PeriSoft

    “over 80 or 90% of cars in this region are used cars of Japanese production…”

    Last time I checked, -every- car on the road here was used. Is that a problem?

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