Changes in customs legislation have made large-knockdown assembly in Ukraine economically unjustified. Now it is much more profitable to import finished cars than to assemble them locally.
This position is held by the management of the AIS corporation, which includes an assembly plant. Therefore, one of the most significant players in the Ukrainian car market has decided to cease production of Geely and SsangYong models. All previously localized models will now be supplied to the country fully assembled.
Naturally, the halt of the assembly line does not bode well: the plant's staff is expected to be cut by about half. The remaining employees will be engaged in re-equipping and preparing cars for sale.
Until now, KrASZ had shown impressive dynamics. In the first six months of 2014, production volume grew more than 4.5 times compared to the same period of the previous year, reaching 7,349 units. In 2013, the enterprise increased production by 2.7 times, to 9,049 cars.
