Conference AUTOINVEST 2012 - first event of the year in the Russian automotive industry

NEWS

April 8, 2012
Russian car market increased by 22% in the first quarter
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March 20, 2012
AutoInvest®Germany2012
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March 1, 2012
Post-release of the Conference «AutoInvest® 2012»
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February 20, 2012
Announcement of international events within the framework of series of «AutoInvest®» Conferences in 2012
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February 14, 2012
Helpful information for delegates of AutoInvest 2012
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February 3, 2012
MAN became a general partner of the Gala Dinner which will take place on February 16
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OPINIONS

Greeting to the participants of the international conference AUTOINVEST 2008 of I.Klebanov, Plenipotentiary Envoy of the President of the Russian Federtion to the North-West federal district
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Greeting to the participants of the international conference AUTOINVEST 2008 of S.Kogogin, Chairman of the Committee, NP «Association of OEMs of Russia»
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Magazine «Expert North-West», №8(310), February 26, 2007
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Economic automobile magazine «Autobusiness» № 75, March 2007
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Newspaper «Nevskoe Vremya», № 17, February 2, 2007
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Newspaper «Kommersant», № 22, February 13, 2007
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Magazine «Expert North-West», №8(310), February 26, 2007

«When North-West Development and Investment Promotion Agency announced the international conference AUTOINVEST 2007 in St.Petersburg and invited «Expert North-West» magazine as information sponsor, the question for us to be or not to be on this Conference solved by itself. All the more so the author of this article till now regrets that last summer he, as well as the most part of Russian journalists wasn't able to get on the conference AutoRussia06 that was organized by British consulting company WBR (Worldwide Business Research). That conference was held for the representatives of foreign companies for the purpose of demonstration the development possibilities of automotive component industry in Russia. It took place in hotel «Astoria» at the heights of the white nights and almost had no responses in Russian press.

Considering that in February, only a little bit later a similar conference was going to be held in Moscow, one didn't expect much of the AUTOINVEST 2007. It was not only because the capital is the main Russian center of decision-making, and neither because the participation in the conference in St.Petersburg cost only 500 Euro - several times less than participation in the conference in Moscow. It just seemed, that decisions concerning the development of Russian automotive components production were not ready yet, that's why the calling together of the professional community in North capital right after the AutoRussia, might become another talkfest on relevant topic. But it didn't.

Visiting of this rich in content, well-structured and interesting event, that gathered more than 300 participants from 16 countries, was very informative. I suppose that at the end of the Conference even the patriots of Russian industry, as well as the «Expert N-W» reporter, had their illusions shattered on the revanche of Russian automotive industry, modernization of Russian enterprises producing automotive components and localization of production of components for assembling plants of foreign-made cars.

On the first session, devoted to the issues of governmental policy on development of automotive industry, the most interest speeches was delivered by senior representatives of administrations of several regions of North-West region.

Regional officials tried to get the particular advantages of their regions across to the audience and to announce the projects of new industrial zones creation.

First deputy Governor of Vologda region Leonid Iogman devoted the most part of his speech to the presentation of industrial park "Sheksna", where, juging by the slides shown, the conditions for building metall processing and automotive component productions, would be made in 2 years.

Regional officials in their speeches didn't conceal that the regions rival for the invesments and foreign ones are more desirable. Grigory Dvas even noticed, that "rivalry on the level of benefits between regions fell outside the limits of common sense, which is not right and makes harm to Russia".

Uncovered self-promotion of regional officials was obviously addressed not to the representatives of Russian companies, but to the top-managers of large foreign producers, who were present on the Conference, as they are the ones who would determine the rules of game on automotive component supplying market.

The requirements of automobile producers, the main consumers of automotive component were presented by the first persons of the companies or supplying directors on the second session of the Conference. According to their speeches, the estimated automotive component market capacity is from 10 to 20 billion US dollars a year. But most part of foreign producers were very careful in valuation of the prospects of participation of Russian companies in development of this market, as they wouldn't sacrifice the quality of the automobiles and component and demand full accordance to corporate requirements from Russian component producers.

The most concrete in showing the future plans was Nissan Manufacturing RUS, Director General - Fujio Hosaka, who demonstrated good knowledge of Russian language. Many listeners liked his speech, because they were tired of understanding the synchronous translation of other orator's speeches. It was clearly announced that on the first stage of the project all Nissan automobiles would be assmebled using only foreign component. Hosaka showed three possible variants of component industry development. First - cooperation of foreign automobile assembling companies in unification of component and showed the example of Renault and Nissan cooperation as an example. Second - component production under the license by automobile assembling companies themselves or Russian companies. Third - organization of component productions in Russia by foreign producers.

At the second part of the Conference the most impressive speech was delivered by Takashi Aoba, President of JETRO. He was the one who delivered a clear verdict to Russian component producers. He compared the structure of Russian component market nowadays to Japan's market back in the 60's of last century, when the most part of the component was produced on the same enterprises, where the automobiles were assembled. Then Japan market went through two restructurisations. At first, component production went to affiliated undertakings and then after amalgamations and acquisitions, an independent branch was formed, which works with automobile companies on contract relations. It is clear, that Russian component industry doesn't have time for such deep restructurisations.

Aoba stated that the main problem of Russian component producers is low quality. High product quality besides technology demands attention to little things and great care.

Stadco GmbH Managing Director Heinz Schmitz said that Russia is not a cheap country, comparing to China and India. So, it's hard for Russian companies to compete on global market. Though, even considering Russian market as a strategic for his company, Schmitz see the prospects only in supplying the production to local automotive producers».