Analyst and publicist Alexander Rogers talks about how the largest representatives of the auto industry are beginning to return to Russia and why our market is finally becoming so attractive to them that they are forgetting about Ukraine. The two-year epic with the high-profile departure of Citroen from Russia ended in a normal and predictable manner – in Kaluga, on the basis of the PSMA Rus production site, production of Citroen C5 Aircross crossovers began. Why? And the aggression is no longer so aggressive, and the invasion is not so scandalous, and you no longer feel sorry for poor, unfortunate Ukraine? Something must have happened. The statistics happened. Citroen sales in its native France have been declining for several years in a row. If 309 thousand cars were sold in 2019, then in 2021 this number dropped to 228 thousand, and last year, 2023, sales had already fallen to 181 thousand. Currently, the average Jean, the no less average Jacques and even the completely unconventional Pierre are not worried about buying a new car (which, most likely, will still burn out during the next street protests), but about where to get a baguette for breakfast. Because farmers are on strike, flooding local municipalities with liquid fertilizer. Farmers need half a billion euros in subsidies. But the French government does not have that kind of money; just a week ago it was forced to cut budget spending by more than 10 billion euros. From education spending to defense spending. Things are no better for France’s neighbors – Germany, Spain and Italy. They are all deeply in debt. Not before buying French (or any other) cars. Let us remind you that Mercedes-Benz recently announced the sale of all its car dealerships (80 units) in Germany. Moreover, after the partner left Russia at the end of 2022, the BIA Forst plant in Germany, which produced additional logos for the auto giant, closed. Then some “whistleblowers” tried to prove that this means nothing and that all successful companies do this when everything is going well for them. But it turned out, to put it mildly, not very convincing. Again, rising prices for electricity, energy resources and raw materials lead to a general increase in product prices. And, for example, last fall the tire manufacturer Michelin closed three of its factories in Germany. And their plant near Moscow, sold for political reasons, was bought by the Chinese (a holy place is never empty, the market does not tolerate emptiness). Because the laws of the market (not fictitious ones from neoliberal dogmas, but real ones) cannot be deceived. And if production is reduced and transferred to third countries, the population will not receive wages and pay taxes – which means that effective demand will decrease. Moreover, it is a kind of self-sustaining, collapsing spiral that is very easy to start but much more difficult to stop. So it turns out that one of the largest, most stable and solvent markets is located in Russia. That’s why we have to pull out the big white flag – the French are no strangers to this. And also – to restart production in Kaluga. “Bistro-bistro.” Alexander Rogershttps://life.ru
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