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FAW Jiefang forms JV in Russia for truck production

MIASS, Russia – FAW Jiefang Automobile Co., Ltd. (FAW Jiefang), China’s second largest heavy-duty truck maker, has formed a joint venture with Russia’s Gorky Automotive Group (Gorky Auto) to produce Jiefang heavy-duty trucks at the Russian partner’s Ural Automotive Manufacturing Plant (Ural Auto) in Miass, according to a report in the Russian newspaper Kommersant.

An assembly line will be upgraded to dedicate production of Jiefang trucks. Diesel engines for the trucks will be provided by Yaroslav Engine Co., while the front and rear axles as well as cabins will be produced at Ural Auto. With an investment of $50-$60 million, the JV is expected to achieve annual output capacity of 30,000 heavy-duty trucks. Around 10,000 units will be produced in 2012.

The locally assembled Jiefang trucks will have an estimated price tag of 2.1-2.2 million Russian Rubles ($66,000-$69,000), which is similar to those of the KAMAZ heavy-duty trucks.

Gorky Auto, established in 1930, is the second largest vehicle maker in Russia with annual production capacity of 200,000 units. This cooperation with FAW Jiefang is expected to further expand its market shares in Russia.

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