Investment Climate in St. Petersburg and Leningrad Oblast
The Russian components industry
➤ Lack of the traditional tier division of component
manufacturers due to the high level of integration with the
major OEMs;
► Lack of a competitive technologies among Russian
manufacturers as a legacy of the highly integrated vehicle
manufacturing coupled with highly amortized equipment make
most local component manufacturers not that attractive;
► The relatively long-term process of adapting new technologies
and applying know-how to local manufacturers;
Economies of scale are a must for attracting major foreign
component manufacturers (most require a good over 200,000
units of car production in order to make an investment
economically viable).
September 4, 2008 11 Investment Climate in St. Petersburg and Leningrad Oblast
ERNST & YOUNG
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