That’s how it’s going in Russia

Business Day Russia - Stuttgart - 2018

Experiences, perspectives, and current development – first-hand information for potential suppliers in the automotive sector at the Russia Business Day in Stuttgart.

The production buildings at the new “Moscovia” Mercedes-Benz plant in Russia are finished. Start of production is scheduled for 2019. Daimler AG is investing intensely in the Russian market: andstill looking for suppliers that also want to be located in the Moscow region. Many potential suppliers came to Stuttgart in June for that purpose. For the Russia Business Day in the context of the GlobalConnect fair. Held by the Chamber of Industry and Commerce (IHK) and the German-Russian Chamber of Foreign Trade.

Business Day Russia - Joachim Follmann, Mercedes-Benz Cars
"Selecting the right partner" – Joachim Follman (center), Head of Operations Strategy, Mercedes-Benz Cars.

“With the government of the Moscow region and with Kamenz, we chose two right partners”, says Joachim Follmann, Head of Operations Strategy, Mercedes-Benz Cars, on the panel on location selection in Russia at the Russia Business Day. “Both partners supported us with their expertize to quickly manage the necessary approval processes. Without their commitment we would not have been able to manage the processes this fast – given the fact that a lot of processes were also new to the authorities.” A statement that was also addressed to Denis Butsaev. The Deputy Governor of the Moscow region also sat on the panel. He traveled to Stuttgart for the Russia Business Day to speak with interested suppliers. His mission: Build up the automotive cluster in the Moscow region.

Business Day Russia 2018 - Denis Butsaev
Also on the panel: Denis Butsaev (right), Deputy Governor of the Moscow region.

“Challenges for German companies in Russia using examples from the automotive industry” was the title of the panel at the Russia Business Day. The participants not only learned from the Daimler Manager that the right location had been chosen to build the first car production plant. Follmann also provided valuable information from the perspective of a premium manufacturer. Important for success in Russia: Qualified employees. The data agrees: 30 million people live in the metropolis of Moscow. The key industries in the Moscow region include mechanical engineering, electronics manufacturing, and aviation and space travel. For companies that settle here, according to Follmann, it is decisive that they are also able to keep their qualified personnel in the long term. The “Moscovia” plant is planning for a staff of 1,000 employees.

Business Day Russia in Stuttgart
"How's it going in Russia?" – First-hand information at the Russia Business Day in Stuttgart.

The Mercedes-Benz “Moscovia” plant is currently being built 40 kilometers northwest of Moscow on 85 hectares of land, an area equivalent to 120 soccer fields. The aim here is fully flexible production for the regional market, starting in 2019. First the E-Class Sedan, followed by the gradual introduction of the GLE, GLC and GLS SUV models. In total, Mercedes-Benz is investing over 250 million Euro in the car plant. From body construction to painting to assembly, all production steps are to be carried out here. Always counting on a close alliance with suppliers from Russia. The Mercedes-Benz Cars Procurement department is in contact with over 60 suppliers. After the Russia Business Day in Stuttgart, more interested suppliers might even show up.

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Apr 26, 2019
Rasmus Muttscheller