Toyota Sent To Siberia?

Bertel Schmitt
by Bertel Schmitt

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.

The Russian Far East and Siberia used to be a hotbed for well maintained barely used Japanese cars, sold before the feared Japanese shaken car inspection and traded in for new. Some 80 percent of the cars in these frosty regions, just across the water from Japan, used to be Japanese RHD models. Last year, Russia enacted punitive tariffs on imported cars, especially on imported used cars. “Moscow wants to force foreign auto makers to open their own plants in Russia,” said Automobilwoche [sub]. And apparently, Moscow’s wishes are being fulfilled. In a somewhat roundabout, but very Japanese way.

According to another story in The Nikkei [sub], Japanese keiretsu giant Mitsui will start a joint venture with the Russian automaker Sollers. Toyota would supply “parts” (most likely CKD kits) and equipment, and train the personnel. Then, the cars would be loaded on the Trans Siberian Railroad and sold all over Russia. Which car is unknown, the Nikkei is going out on a limb and guesses it could be a sedan or an SUV.

Mitsui and Toyota go a long ways back. At some time in the dark ages, Toyota was part of the Mitsui conglomerate.

It could also be that the Nikkei jumped the gun and that it’s only talk, just like Mazda. When asked about the plans, Toyota spokesman Dion Corbett told TTAC that “no decision has been made.”

After a near death experience, the Russian car market is humming again . Bloomberg reports that Russian new car sales rose 72 percent in January to 127,654 units.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments
Join the conversation
2 of 4 comments
  • Obbop Obbop on Feb 10, 2011

    Isn't there a BIG unused building at Chernobyl ready to renovate and be put to use. Likely in better shape than large parts of Detroit and surely with a kinder, gentler more civilize populace but that's just an Old Coot Opinion.

  • Cmoibenlepro Cmoibenlepro on Feb 10, 2011

    "Some 80 percent of the cars in these frosty regions, just across the water from Japan, used to be Japanese RHD models." I guess that a significant number of RHD cars could create big traffic and security issues.

  • Ravenuer I see lots of Nissans where I live, Long Island, NY. Mostly suvs.
  • ClipTheApex The latest iteration of the CRV is very handsome. Both CUVs have their mechanical and suspension challenges but in looking at interior & exterior design, I believe the CRV is much more tasteful. RAV4 seems a bit overwrought with way too many creases and bulges-- delivering a cohesive look. Just my opinion.
  • Jbltg The more time passes, the more BMW's resemble Honda. zzzz
  • VoGhost Doubling down on the sector that is shrinking (ICE). Typical Nissan.
  • Dwford I don't think price is the real issue. Plenty of people buy $40-50k gas vehicles every year. It's the functionality. People are worried about range and the ability to easily and quickly recharge. Also, if you want to buy an EV these days, you are mostly limited to midsize 5 passenger crossovers. How about some body style variety??
Next