Ssangyong Motor said yesterday a deal with Russia's Severstal-Avto, owner of off-road vehicle maker
UAZ, to assemble sports utility vehicles in Russia could be worth up to 497 billion won ($478.3 million).
The South Korean firm said in a filing to the stock exchange the deal to supply complete knock-down
(CKD) kits should result in between 18,250 and 25,900 of its Rexton SUV model in total being rolled out
by the end of 2010.
The figures appeared less optimistic than those given by Severstal-Avto, which had announced the deal
on Monday and saw assembly of up to 10,000 Rexton vehicles a year, rising at a later stage to 25,000.
Production will begin by the end of next year, with about 400 vehicles and gradually increase to 7,000
units per year,？the South Korean car maker said in a statement.
In CKD ventures, car makers use local labour to finish a car？ assembly once its building blocks, or ？
its？ have been imported from abroad.
Officials from Ssangyong and Severstal said the cars could be assembled at the Ulyanovsk plant or at
an alternative site. ... Ssangyong sold a total 119,365 vehicles during the January to November period,
down 10.8 percent from a year ago. Domestic sales, hit by the bust of consumer spending boom,
declined 23.5 percent to 91,632 units and exports nearly doubled to 27,733.
Shares in Ssangyong Motor were up 0.2 percent to 6,250 won, outpacing a 0.3 percent decline in the
main market .
- Source from Reuters (Dec 8, 2004) -
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