Turkey, Russia sig deal to jointly produce trucks, tow trucksDecember 10, 2014 - 10:18 AMT PanARMENIAN.Net - Turkish automaker Ford Otosan, owned by Koç Holding and the Ford Group, signed a deal Tuesday, Dec 9 with Kaliningrad-based Avtotor Holding for the production of trucks and tow trucks in Russia, Hurriyet Daily News reported. The vehicles produced in Kaliningrad would be sold in the Russian market, with first production set to start at the end of December. Ford Otosan aims to sell its products to Russian state-run companies, such as Gazprom, which prefer Russian-made trucks, and to overcome the 10 percent import tax, which is demanded by Russian authorities for vehicles produced abroad. “The Ford Trucks brand will move one step further with this deal. We have invested in Russia, the largest truck market in Europe, to increase our competitiveness and to manufacture trucks in Kaliningrad,” said Ford Otosan CEO Haydar Yenigün. In the initial stage, the company will assemble the trucks and tow trucks in Russia and then start production in the following period after the supplier industry grows, he said. Kaliningrad is the free trade area of Russia, so Ford Otosan will be able to enter two new markets, Kazakhstan and Belarus, Yenigün said. “The biggest advantage for us to have production in Russia will be to avoid the 10 percent import tax, which Russia charges for its heavy commercial vehicle imports. Moreover, we will be able to sell heavy vehicles to huge state-run companies in Russia, including Gazprom, which only buy vehicles made in Russia,” he said. Ford Otosan aims to sell over 7,000 units in Russia annually by 2020. Avtotor Holding has been in production in Kaliningrad for the last 20 years as the first private automotive company of Russia, said Avtotor CEO Valeriy Gorbunov just after the signature ceremony with Ford Otosan. It is a big step for Avtotor and Russia to add Ford Trucks into its production line by 2015, he noted, adding that Avtotor has an annual production capacity of 15,000 heavy trucks. Ford Motor originally withdrew from the global truck market when it sold its truck unit to Iveco in 1986, but returned to cargo truck production in 2012 with Ford Otosan’s Cargo truck. The patent rights of the vehicle are owned by Ford Otosan, as the model was developed and first manufactured in the Eskişehir plant in Turkey in 2012. The new model is exported to 65 countries. Photo: AFP Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Kazakh Foreign Minister arrives in Armenia Kazakh Foreign Minister Murat Nurtleu on Monday, March 18 arrived in Armenia for a two-day trip. Aliyev touts “good chances” for normalizing ties with Armenia Azerbaijani President Ilham Aliyev has declared that there are “good chances” for normalizing relations with Armenia. Putin secures fifth term as Russian president Russian President Vladimir Putin has secured a fifth term in office through a dubious national plebiscite. Top Armenian, Indian defense officials discuss cooperation The discussions primarily focused on enhancing cooperation in the defence sector between Armenia and India. |