(business) Toyota to Make Cars in Russia (moved from ATSNN), page 1

Toyota, Russia's economic development and trade ministry and St. Petersburg's administration are planning to sign a memorandum on building Toyota's assembly plant near St. Petersburg, Svetlana Ganeyeva, chief of the economic development and trade ministry's investment department, has told reporters today. Ganeyeva did not give the exact amount of Toyota's investments but noted that it was a matter of hundreds of millions of dollars. The project will officially be opened on April 26, 2005, she said. An investment agreement for this project will be signed later.

msnbc.msn.com
The Toyota Motor Corp. said Tuesday it will build a car assembly plant near St. Petersburg, looking to capture growing demands by Russian consumers for cars.

The new plant, located in the town of Shushary, will start operations in December 2007 and produce about 50,000 automobiles a year, mainly Camrys, said Tokuichi Uranishi, Toyota's senior managing director for Europe and Africa operations.

"Showing other companies the real success of Toyota, we hope to create a favorable climate for increased investment in the Russian economy, which will lead to Russia's economic growth, expansion of the automobile market and development of the auto industry in Russia," Uranishi said.

The carmaker announced its plans after reaching a basic agreement with the Russian government and the city of St. Petersburg. Toyota said its initial investments in the plant would total $144 million.

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A few days ago Chrysler announced plans for China which had far reaching implications,
because it threatened a loss of jobs world wide. This deal by Toyota however, is a win win situation for all. Unlike the Chrysler deal where the cars were to be made for sale in foreign markets this deal, creates jobs for Russian people while giving Toyota a new market for the sale of their cars.

Several large foreign carmakers have already opened production in Russia: Ford’s plant in Vsevolozhsk outside St. Petersburg, Renault in Moscow, Korea’s KIA, German BMW, American Hummer and France’s Chevrolet in Kaliningrad, alongside Korea’s Hyundai at Taganrog in southern Russia.

That in my opinion is the way the world market should work.

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