MOSCOW, Oct 17 (PRIME) -- Assembly of the cars of China’s First Automobile Works (FAW) may be launched at the former plant of Nissan in St. Petersburg, Vedomosti business daily reported on Monday quoting sources.
On October 11, the Industry and Trade Ministry said that car producer Nissan would sell its car plant and research facilities in St. Petersburg and a marketing center in Moscow to the ministry’s subordinate Central Scientific Research Automobile and Automotive Engines Institute (NAMI) for 1 euro. The deal includes a buyback option within six years.
A source told Vedomosti that NAMI does not produce cars, and would get a production partner – a Russian company to operate the St. Petersburg plant. Truck producer Kamaz could become the partner, but there are other competitors, the source said, while another source confirmed that the proposal was made to Kamaz.
Both sources said that cooperation with FAW was considered as one of the options for loading the capacities of the Nissan plant, but the sources did not say at what stage the negotiations with the Chinese company were.
A source from the consultants of the Chinese car producers in Russia told Vedomosti that this proposal was unlikely to interest FAW, as the buyback option means that the Chinese company would have only six years to make cars at the plant. On the other hand, FAW is a state-controlled company, which means that a political decision could be made, the source said.
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