Shell signed a memorandum of understanding to supply lubricants to Geely Motors, the Russian marketer of Chinese cars, the oil major said last week.
The five-year supply agreement will be signed by Jan. 1, 2014. Geely expressed interest in a permanent supply of Shells lubricants, which will be delivered at the companys dealership network across the country, Shell Russia said in its Sept. 6 press release.
Under the protocol, Shells flagship brand Helix will be recommended for use in all models sold by Geelys official dealers in Russia. Both companies will expand the partnership into marketing by offering their customers new approaches in car maintenance. The first joint promotion starts in October, and it will be focused on the car makers Emgrand model, Shell said.
Geely cars will be using Shells synthetic engine and transmission oils that [provide] better protection and operation of the engine, transmission and other car components, said William Kozik, general director of Shell Neft, the oil majors Russia subsidiary. This partnership is aimed at meeting our customer needs by offering outstanding and convenient service and high-quality lubricants.
Our company tries to expand its range of products and is actively working to improve the quality of customer service, focusing on the warranty and post-warranty period. As we recognize the quality of Shell products and their relevance in Russia, we hope to strengthen our position in the countrys automotive market by providing our clients the highest level of service, said Igor Ovsyannykov, Geely Motors general director.
Shell and Geely first started their cooperation in 2009, when both companies signed a strategic partnership agreement for China. At the moment, Shell is the automakers largest supplier of lubricants for factory fill in the country.
Last year Shell opened a 180,000 tons per year blending plant in Torzhok, Russia. The company is one of the biggest lubricant marketers in the country and holds around 20 percent share of the countrys finished lube import market.
In the first half of 2013 Geely sold 11,700 units in Russia, and it expects to sell up to 30,000 until the year’s end, according to Geely Motors. In 2014 it expects its car sales in Russia to reach 50,000 units. The Chinese car brand in Russia is assembled by Derways Automobile Co., based in Karachaevo-Cherkessia, a republic in the North Caucasus. The company expects the growing demand in the coming year to be partially covered by a Geely car assembly plant in Belarus.