BYD 'will not to be affected' by Russian partner's bankruptcy

Chinese automaker BYD said it will not be affected by its Russian partner TagAZ's bankruptcy, according to the China Business News.

The Russian automotive assembly plant was reported to be heavily in debt, and the local court has already blocked its assets and bank account, which could lead to bankruptcy.

BYD signed a cooperation contract worth $3.6 million in July, but the company denied it would be affected by its partner. Wang Jianjun, Deputy General Manager of BYD Automotive Sales Co., Ltd. , said the cooperation work had just started and had not made any substantial progress.

According to the agreement, the Russian assembly plant was set to produce 10,000 BYD F3 this year. But the company only started to produce F3 in November.

TagAZ has a debt of a total of 21 billion RUB ($671 million) from 12 creditors. Its previous partners such as Hyundai and Chery suspended cooperation due to the financial crisis.

One expert in the auto industry said that partners of TagAZ will be affected by its bankruptcy, for example in the matter of whether or not the debt can be paid off. And BYD has to consider how it will proceed regarding the unfulfilled contract. TagAZ has a debt of a total of21 billion RUB ($671 million) from 12 creditors, according to Russian media reports.