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Assembly of Foreign Cars in Russia: Prospects for the Regions


Sergey Terekhov
(about the author)

Terekhov Sergey Aleksandrovich – Postgraduate Student, Department of Economics, Management and Law, Volga- Vyatka Academy of Public Service under the President of the Russian Federation, Specialist for Procurement of Motor Car Running Gear, Avtoframos OJSC, Nizhny Novgorod

Published in:
Russian Journal of Entrepreneurship
– № 11-1 / November, 2010



Keywords: automotive industry, car assembly plant, car kit, component partsproduction, industrial assembly, jobs, localization, regions economy


Citation:
Sergey Terekhov (2010). Assembly of Foreign Cars in Russia: Prospects for the Regions. Russian Journal of Entrepreneurship, 11(11), 70-76. — url: http://bgscience.ru/com/lib/2410


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Abstract:

Launch of a new car modification as a method of sales promotion, widely used by car manufacturers, can also be turned into a mechanism for developing regional economies. The advantage of this method is that the new model requires less investment in its development since it is based on the existing platform. As a result of diversification the total production volume of car manufacturers grows and it leads to the components consumption increase, which creates new jobs in the automotive industry. The article gives the results of calculating the number of newly created jobs for different regions in relation with the level of local integration of components production.







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