Great Wall Motor eyes new Russia JV in 2009

Shanghai, November 26 (Gasgoo.com) A Great Wall Motor spokesman said the company is in talks with a major Russian importer for distribution of Great Wall vehicles in the country, a Xinhua report said today.

Shang Yugui told reporters in an interview that cooperation talks with a Russian importer have indeed come to the final stage but he has nothing to declare at the moment.

The report said the ongoing talks may end in the two parties jointly building a joint ventue for assembly of Great Wall's Hover SUV and some sedan models. More details are expected earlier next year.

Industry analysts say Great Wall may not expect to hold the majority stake in the planning venture as before under the current protectionist regulations from the Russian government and it shall prepare to change their way of investment in the country in order to lower risks.

Great Wall announced earlier last week that it has terminated its Russia-based joint venture called Great Wall Alabuga Motor Open Joint Stock, as it failed to get tax concessions from the local government.

The joint venture planned to build a plant to make Great Wall Motor vehicles after signing an agreement in 2005. Great Wall owns 75 percent of the joint venture and the Tatarstan agency owns the remainder.

Great Wall Motor has become the largest Chinese brand in the Russian market since it entered the country in 2004. This year it expects to double sales in Russia to 20,000 vehicles.