Sanctions prevented Chery from settling in UAZ

by time news

The Chinese auto concern Chery, which has a localization project with Sollers Auto (the group includes UAZ), decided to abandon the idea of ​​​​producing cars at the site of the Ulyanovsk Automobile Plant. This was reported to Vedomosti by two sources familiar with the plans of the companies. The main reason, according to them, was the entry of UAZ into the EU sanctions list in early June.

Chery may consider the option of localization at another site of Sollers, one of Vedomosti’s sources says. In addition to UAZ, the Russian company still has joint ventures with Ford in Yelabuga and Mazda in Vladivostok. Both joint ventures are still frozen. At the same time, it is not clear how the Chinese concern will receive state support if production is organized: all current market players have already signed special investment contracts (SPIC) and it is impossible to change the main contractor for them, the source states.

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