To make 200-400 vehicles, it is basically a low tech handmade process of putting together parts. Buy and ship in the parts, substitute any parts you can buy or make locally. Most local body shops here in the States can do the job, so in essence, this is a big Russian body shop. Russian mafia are so good at stealing cars in Europe, guess the problem here is there are just so few Hummers to steal in Europe, and Hummer owners over there are not the types you want to mess with.
If this is true and works out, everybody wins. GM sells lots of parts, more profitable than selling vehicles; Hummer can say we now make Hummers in Russia, put a map pin on the map. Russians win, instead of copy the Hummers, now they have the legal right, cut the cost with as many local parts as they can. There are tax breaks, write off, depreciation, often worth more than the vehicles they sell.
Toyota and Nissan have plants in many countries around the world, in many of these countries, exact same vehicles made in Japan are available, they are far more desirable, cost 50%-100% more, yet always enjoy a waiting list.
If you don’t trust the Enron or Worldcom numbers, wait till you deal with Russian or any third world numbers. $70 million in press releases is usually $7 million in reality. It is perfectly normal to cheat, wrong or defraud.
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