August 30, 2018, 11:56 pm / Auto Exclusively by subscription

There are no plans to build a new plant for the production of luxury Aurus cars.

The main option is to use the facilities of one of the project participants, Sollers. Vladimir Shtanov Anastasia Ivanova Cars of the new luxury brand Aurus were developed as part of the “Unified Modular Platform” project / Andrey Gordeev / Vedomosti

Sollers has developed a concept for organizing a new production of Aurus cars, which by the end of 2018 is planned to be approved by the shareholders of Aurus LLC - Sollers itself (25% in the joint venture) and NAMI (75 % ), and then by the new participant in the joint venture, the Fund defense, security and development (DSDF) company Tawazun from the UAE (will enter the joint venture by the end of the year, receiving a 30% share). A Sollers representative told Vedomosti about this.

The cars of the new luxury brand Aurus were developed by US as part of the “Unified Modular Platform” project (unofficially “Cortege”), which cost the state more than 12 billion rubles. The same institute produces cars. But its capacity allows it to produce 150–200 cars per year. Pre-orders are currently open for Aurus sedan and limousine cars. However, pre-order does not impose any obligations on the potential buyer.

In addition, prices for cars will be announced only at the beginning of next year. Then sales will begin. At the Moscow Motor Show it was announced that orders already exceed NAMI's capabilities for the 2019 production year and by 2021 production will be organized at the partner's facilities. “NAMI equipment will remain for the further development of the project, for future models with different types of bodies,” explained Vadim Pereverzev, chief designer of the EMP (Aurus) project, in an interview with Vedomosti (see page 08). Following the sedan and limousine, there will be a crossover (the prototype will be presented in 2019), a coupe, and a convertible.

At which Sollers site the Aurus production will be organized is not disclosed. But the concept developed by Sollers, according to a company representative, involves a combined approach: the use of existing equipment and infrastructure, as well as the acquisition of specific equipment, including a welding line and dies. The assembly line will also be dedicated. “Building a plant from scratch is expensive and economically ineffective, given the expected production volumes of up to 10,000 cars per year when working in two shifts,” notes a Sollers representative.

“This is the most rational decision. The volumes are small, and besides, there is enough free capacity to produce cars in Russia,” comments Ivan Bonchev, managing partner of EURussia Partners.

Representatives of NAMI and the Ministry of Industry and Trade declined to comment. In addition to UAZ, Sollers also has a joint venture, Ford Sollers . His representative did not respond to questions last night.

According to Bonchev, production will be organized at UAZ facilities. Minister of Industry and Trade Denis Manturov named UAZ as a potential platform for the production of Aurus crossovers. After all, in addition to the luxury one, a cheaper option can be developed.

The purchase of additional equipment will be financed by the shareholders of Aurus LLC; a partner from the UAE is involved in the project, including for this purpose, explains a Sollers representative. Earlier it became known that the DSDF will invest 110 million euros in the project - the money will go towards the development and production of Aurus cars, the Ministry of Industry and Trade explained in a statement. Investments, if the concept is approved, will amount to several tens of millions of dollars, continues the Sollers representative.

The partners can meet the $100 million limit, but only if they make maximum use of the available equipment, primarily the painting booth, Bonchev believes. For comparison: if you build a car plant from scratch, you will need at least twice as much money, he adds.