Joint Ventures in Russia: Inchcape

PanAsianBiz ^ | June 29, 2006 | Dr. Bill Belew

[G. Stolyarov II]

Russia is not quite the bear that the dragon of China is. But Russia still has appeal despite the many real obstacles and challenges a business partner might face.

The laws change seemingly on a whim; the government jumps in and out of relationships; work stops; a GM factory faced a temporary shutdown when it couldn't come to terms with a state-owned partner.

Still, there are a number of joint ventures in the news.

Despite the problems that GM has been having, the automotive retail group Inchcape hopes to team up with Moscow's automotive retailer Independence Group.

Inchcape has operations in Europe, Hong Kong, Singapore and Australia, so, why not Russia, too, they say.

Inchcape wants to sell and service Toyotas in Moscow. Toyota is one of Inchcape's global brand partners.

Inchcape will be majority owner and have one tire in Moscow's fast-growing garage.

[G. Stolyarov II]

We should wish Inchcape well in bringing a piece of the free market to a statist country controlled by whimsical, capricious, and arbitrary bureaucrats. Let us hope that Inchcape has the fortitude and resolve to resist attempts by the bureaucrats to control and expropriate it; knowing the Putin regime, these attempts are certainly forthcoming. See Dr. Belew's blog at PanAsianBiz