Onexim Group owner to launch economy-class automobile production in Russia
MOSCOW, Russia — Mikhail Prokhorov, the multibillionaire owner of the Onexim investment group, has announced plans to create a new automobile plant that will specialize in the production of a new economy-class autobrand in Russia in partnership with Yarovit, the St. Petersburg-based heavy duty vehicles manufacturer.
The announcement was made at a recent meeting with Russian Prime Minister Vladimir Putin in the Government’s White House in central Moscow, where the richest of the Russian oligarchs presented the ambitious plan to produce the low-budget car brand, whose end-users’ purchasing price will hover around 8,800 euros, to the prime minister.
Dmitry Peskov, the press secretary to the Russian prime minister, said Putin listened very attentively to the businessman’s presentation after which he ordered a prompt study of the project by all the interested federal ministries. According to the publicly available preliminary data, the estimated amount of financing needed for the realization of the ‘People’s Car’ project, without taking into account the cost of setting up a new production platform, will be around 100mln euros.
The ‘People’s Car’ project investors plan to create a new production plant, a strategy, which, according to automobile industry experts, make more business sense, as the majority of Russian car factories are currently overburdened with colossal problems that cannot be resolved in the foreseeable future, such as huge debts and production of vehicles that are almost absolutely unattractive to most local auto buyers.
According to some experts and local media reports, the Onexim group owner has already expressed his readiness to bankroll the project for two years. Besides, there is a very high probability that this project could be included in the list of the state’s innovative projects, an outcome that could give the People’s Car project investors an easy access to government resources and other state funds that have been set up in the country to provide real support to new business startups and other innovative investment projects and programs in the local economy.
The Onexim investment group is one of the largest private investment funds in Russia, which specializes in undertaking of huge-capital investments into various sectors of the local economy, such as the mining and real estate industries as well as innovative projects in the energy and nanotechnological sectors.
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