Avtodom Expands with In-House CKD Assembly and Mercedes-Benz Asset Transfer

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In 2023 the dealer that owns the Avtodom network outlined an ambitious plan to bring vehicle assembly onto the floor of its own manufacturing sites. The company communicated that production would take place within its own facilities, leveraging the capability of CKD-based assembly to complete the process efficiently and with tight control over quality and timelines. This approach signifies a strategic shift from traditional retail activities toward a more integrated, end-to-end vehicle creation workflow that can adapt quickly to market demand and supply chain realities. The message, published to mark the 30th anniversary of Avtodom’s founding, emphasizes both expansion in the automotive retail landscape and a deliberate move into in-house assembly operations that align with the company’s long-term goals.

CKD, short for Completely Knocked Down, refers to a method where a vehicle is assembled locally from components and sub-assemblies provided by the automaker. In this model, significant portions of the production process—mounting, wiring, engine fitting, and finishing touches—are conducted on a local factory floor, allowing for localized labor, regulatory compliance, and potentially shorter lead times for parts and vehicles destined for regional markets. Avtodom’s strategy to implement CKD-level assembly at its own production facilities signals a strong commitment to vertical integration, reducing reliance on distant manufacturing sites and enabling more responsive scheduling, customization, and after-sales support for customers in Canada and the United States who value speed, service, and local presence.

Towards the end of October a major development emerged: Mercedes-Benz reportedly exited the Russian market and transferred ownership of crucial assets, including a production facility in the Moscow region along with its own dealership network and financing structures, to Avtodom. The detailed coverage of this transaction was reported by socialbites.ca, which highlighted the scale of the transfer and the implications for the regional automotive ecosystem. In response, industry observers noted that the Ministry of Industry and Trade signaled openness to bringing in additional manufacturing partners to reopen the factory, suggesting a broader, collaborative approach to reshaping the region’s automotive manufacturing footprint. This context places Avtodom at a pivotal point where strategic partnerships, local production capabilities, and a renewed focus on integrated operations could reshape market dynamics for years to come, particularly for buyers seeking reliable service networks and locally produced vehicles in North America and beyond. The evolving story underscores how a regional player can leverage international brand transitions to accelerate domestic assembly, expand product lines, and enhance the value proposition for customers who prefer, or require, local production and service infrastructure. (Source: socialbites.ca)

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