Geely Shifts Gears in Russia, Will Build With AMUR

NOVOURALISK, Russia — China's Geely Automobile has selected Russian truckmaker AMUR as its local partner, reversing an earlier plan to build its own assembly plant in Russia.

The partners expect to assemble up to three Geely cars, including a midsize crossover, a midsize sedan and a compact hatchback.

AMUR — the Russian acronym stands for Automobiles and Motors of the Urals — previously assembled a version of the compact Geely CK sedan, rebadged Otaka in the Russian market, until the 2008 financial crisis forced the factory to quit the venture.

A second Russian automaker, Derways, builds a version of the Geely MK sedan, called King Kong in China.

At present, the demand for Geely cars in Russia is steadily increasing. According to data from the Association of European Business, 1,400 Geely cars were sold in Russia in the first quarter, up 35 percent from the same period last year.

Inside Line says: Geely, which also owns Volvo, is proceeding a bit more cautiously in Russia, as that vast market begins to recover from the recent financial crunch.