Auto industry: To Russia, With Love

Well, we all know that the US Market is sagging, and that is true in every sense of the word, especially in the auto market. While the European market has stagnated a bit, the ripple effect of the economy woes could spill over there as well. China and India are starting to perk up as good, consistent global opportunities, but there is one area that the large auto makers of the world seem disturbingly absent: Russia.

However, that could change very soon. Honda has said they are going to start sending Pilot SUVs to Russia, and while the number is very small overall, it is clearly to test the waters of sales. Likewise, we know that Ford just re-opened a Daewoo plant in Romania and this could result in 500K engines per year. With the vast open space in Russia as well as no clear power maker in place, it seems like food for the taking, right?

Not so fast. The biggest enemy of the business world making its way and rooting itself is not the same as other areas. The corruption and crime in Russia is so rampant that murder, extortion, and underworld "happenings" are almost commonplace here. To think that with these types of things occurring and major car makers trying to come in an muscle in on sales of cars, it's actually kind of scary--but it seems for now that auto makers are willing to take that risk considering the alternatives. I just wouldn't be too happy if suddenly I was named the head of their Russian division, because if I did, I would certainly make sure all of my affairs were in order and my headstone picked out....

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Auto industry: To Russia, With Love

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