Things may not be so bad in Russia for the automotive sector after all, as Daimler AG continues to want to build an assembly plant there. The automaker has reportedly applied to the city of St. Petersburg to set up a factory in the region.
News was broke by Russian news agency Interfax, which cited local officials. Daimler’s plan bucks the recent trend of foreign automakers scaling down or even quitting the Russian market due to the economic crisis triggered by western sanctions.
According to the aforementioned source, St. Petersburg vice-governor Mikhail Mokretsov has assigned a municipal investment committee to handle Daimler’s bid. Local authorities are said to have already proposed a possible site in the Russian city’s southern belt.
Interfax also cited Russian Industry and Trade Minister Denis Manturov, who said Daimler is negotiating with officials in Moscow as well about setting up a passenger car plant.
However, Daimler has not offered details about the reported plans. “There are no decisions at this point about the start of local production of Mercedes-Benz passenger cars in Russia,” a Daimler spokeswoman was quoted as saying by Reuters. She added that Daimler continues to monitor all markets, including Russia, with a view to setting up potential local capacities.
Daimler currently builds trucks in Russia with local partner Kamaz and vans with GAZ.
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