Vladivostok becoming a manufacturing base for Japanese autos

The Russian government has started encouraging foreign car manufacturers to form alliances with local auto companies in order to boost the development of its own manufacturing industry, and at the same time reduce the country’s dependence on natural resources.  This strategy is expected to also lead to the development of Russia’s Siberian and Far Eastern regions.

Japanese Used Cars at Vladivostok Port

As a result, Vladivostok, which has long been a thriving market for used Japanese vehicles, is now about to get transformed into a manufacturing center for new Japanese cars and trucks.  Recently, Nikkei, Japanese business daily reported that Toyota will soon become the first Japanese auto-maker to assemble automobiles in Russia’s Far Eastern regions. Toyota, Mitsui & Co – the Japanese trading house, and Russian car manufacturer Sollers are going to launch joint automobile production in 2012 in the far eastern city of Vladivostok.

Toyota will be providing auto-parts and production technology for this joint venture expected to build around 30,000 Toyota-brand vehicles, mainly saloons and off-road vehicles including the Land Cruiser Prado, each year. To begin with, the companies will be operating the production facilities of Sollers.

Another Japanese car-maker, Mazda Motor Corp., is also planning to commence vehicle production in Russia’s Far East. Isuzu Motors Ltd., that already has a joint venture factory with the Russian company Sollers in western Russia that manufactures small trucks, will be relocating the facility to Vladivostok. This factory will manufacture 5,000 units each year from 2012.

The Russian government will be reducing tariffs and the fares on the Trans-Siberian Railway once Japanese companies begin transporting vehicles to Moscow and different cities in the western regions of Russia.

In order to avail of such preferential treatment, however, besides automobile assembly, local factories will also have to introduce detailed processes in their manufacturing activities, such as welding and painting, within around 18 to 30 months after commencing operations. In addition, the factories will have to use more locally manufactured parts. A major problem will be finding local suppliers of high quality products.

According to Sergey Udalov, executive director of the Russian auto market research agency – Autostat, foreign vehicles are built using advanced technologies, and therefore, the government should provide additional help to domestic manufacturers.

Currently, most of the vehicles on the roads are used, right-hand drive, Japanese vehicles. (more…)

Japanese Automakers Start Checking Radiation Levels on Vehicles

If the natural calamities were not enough to cause disturbance and havoc in the lives of the people of Japan, the Japanese industry has also been badly hit. The Japanese car manufacturing industry is one of the leading sectors in Japan which also greatly contributes to the economy. But, the Japanese car industry has also been hit with severe problems and never before has the booming car industry of Japan faced so many problems.

The Japanese car industry has been facing a severe shortage of auto parts due to problems in supply chain management. The furious tsunami has caused great damage to the nuclear plants along the coastal areas of Japan resulting in radiation leaks which have also crossed the danger limit in many areas. As you already know, the Japanese car giants export their cars to plenty of countries around the world. Owing to this, plenty of international car buyers who buy Japanese brand of cars have expressed great fear and concern about the Japanese cars containing harmful radioactive substances.

To remove all these fears expressed by the international customers, the Japanese car industry on its part has been carrying out strict checks on its cars to detect any kind of radioactive substances. Not only are the tires of the cars being checked, but even the interiors of the cars are being thoroughly checked. And the good news is not even a single car with radioactive trace has been found. Most of the top car manufacturing giants in Japan are carrying out strict tests.

It has been unanimously agreed by the entire car manufacturing companies of Japan that these tests to check the radiation levels must continue till the problem of nuclear reactors is fully solved. You would be happy to note that in spite of all the radiation fears the sales of Japanese cars in the foreign countries have not dropped. Leading car manufacturing giant Nissan has decided to thoroughly check and screen all the auto parts before shipping their cars to Taiwan.

In order to ascertain that the cars are radiation free and have been properly screened, all the checked cars will sport stickers on the lower side of the right corner. These stickers can be posted only on those cars which have cleared the radiation test. Apart from Nissan, even the other car manufacturing companies are carrying out similar radiation checks on their cars. For every five thousand cars manufactured, ten cars are thoroughly checked for radiation. These checks have become necessary so that Japan can export its cars to all other countries which will definitely help its car industry. At the same time, even the consumers in the importing countries will be happy and relieved to buy Japanese cars.