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VILLAGE IN UKRAINIAN
Over its nearly 150-year history, the plant changed its name many times. In 1863, Mennonite Abram Kopp (colonists from Prussia lived in these places from the eighteenth century) began to produce straw choppers in their workshops. Soon the workshops grew to an agricultural machinery factory. Nationalized after the revolution, the plant in 1923 received the proud name of Kommunar. For a long time he produced combine harvesters and other equipment for the village, but in the late 1950s they decided to make folk microliths and once again renamed it - of course, into Zaporizhzhya Automobile. The car was developed by the whole world: the main part of the project was carried out by the Moscow MZMA, which produced “Muscovites”, the engine was engaged in a branch institute of NAMI. The first independent development of the plant - the famous "eared" ZAZ-966 was mastered in 1966 and then for almost 30 years produced models based on it.
For 34 years (from 1960 to 1994), 3.4 million minicars with an air-cooled engine were assembled in Zaporozhye. Many of them still run along the roads of Ukraine, Russia and other countries.
ZAZ 965 became the first-born of the plant
ZAZ 965 became the first-born of the plant. ZAZ 965 became the first-born of the plant.
The next basic model appeared on the conveyor of ZAZ with a great delay - in 1987. It was a front-wheel drive three-door hatchback ZAZ-1102 Tavria. Hardly had time to master it, when the Soviet Union collapsed and economic problems began. But already sovereign …
REMEMBERING DEU
The Ukrainian authorities dragged on for a long time with the privatization of the country's main automobile enterprise, taking the old revenue to the budget in the old fashioned way. No wonder that by the mid-1990s the plant was on the verge of bankruptcy. In 1994, the production of the “Cossacks” was stopped: demand for them fell almost to zero. And Tavria’s sales were rapidly declining: the model could not withstand competition with used foreign cars, because Ukraine then had very low customs duties. In 1997, only 15 thousand new cars were sold in the country, including only 1.9 thousand “Tavria”.
They tried to promote Tavria even to the markets of Western Europe, but the collapse of the USSR put an end to these ambitions. Although her commercial got Silver Lion at the Cannes Film Festival
They tried to promote Tavria even to the markets of Western Europe, but the collapse of the USSR put an end to these ambitions. Although her commercial got Silver Lion at the Cannes Film Festival! They tried to promote Tavria even to the markets of Western Europe, but the collapse of the USSR put an end to these ambitions. Although her commercial got Silver Lion at the Cannes Film Festival!
At the end of 1997, the Ukrainian parliament adopted the law "On stimulating the production of cars." He acted for almost ten years and really helped raise the local auto industry. All foreign cars were taxed at 25 percent; it was forbidden to import cars older than eight years. Enterprises were exempted from paying VAT; they even received a package of benefits. For example, government agencies were required to give preference to models of local assembly when purchasing. VAT was canceled when buying a new car of domestic production.
Already under this law, the leaders of the plant and the Ministry of Industrial Policy tried to find an investor; representatives of PSA Peugeot Citroen, Fiat, General Motors flew to Zaporozhye. In the end, Kiev officials chose the South Korean concern Daewoo. In September 1997, AvtoZAZ and Daewoo Motors signed an agreement on the creation of a joint venture AvtoZAZ-Daewoo with a registered capital of $ 150 million. The Ukrainian side transferred production capacities to the joint venture, and the Korean side transferred technology and equipment. In Zaporozhye were supposed to collect five models; Koreans promised to modernize Tavria. The parties intended to invest more than $ 1.3 billion in a ten-year project.
At first, everything seemed to be alright: already in May 1998, in Klyant, a plant of automobile aggregates “Kvant” (it became a branch of ZAZ), the large-unit assembly of the “Lanos”, “Nubira” and “Leganza” models began. At the main site in Zaporozhye, the updated ZAZ-1102 was launched into the series under the name Tavria-Nova; with the participation of Korean engineers, in a short time, they prepared for release the five-door elevator ZAZ-1103 Slavuta (in series since 1999). But the plans were crossed out by financial crises: Ukrainian (he followed immediately after the Russian), and then Korean. The Daewoo company was on the verge of bankruptcy in the fall of 1998, and since October it stopped transferring money and supplying car kits, having left the joint venture unilaterally. In December, the last "Koreans" were assembled. (They will return to Ukraine, but later under a different name.)
Along with Soviet equipment, the workshops are equipped with the most modern imported machines and mechanisms
Along with Soviet equipment, the workshops are equipped with the most modern imported machines and mechanisms. Along with Soviet equipment, the workshops are equipped with the most modern imported machines and mechanisms.
Settle the dispute entrusted to a special commission. Koreans demanded to return the invested money and change the management of the plant; Ukrainians insisted that partners intentionally did not fulfill their obligations. “Clarification of relations” continued until the end of 2000, when, finally, the Daewoo bankruptcy was declared. The first "Korean stage" in the history of ZAZ ingloriously (but relatively safely) ended.
The plant, as before, worked only at 10-15% of capacity, and again it needed a serious foreign partner. In September 1999, the government announced a tender to select a company to manage the state-owned stake in AvtoZAZ OJSC (82% of the shares). Predictably won the Ukrainian Automobile Corporation (UkrAVTO), which was led by Tariel Vasadze. Once he headed the republican "Ukravotekhobsluzhivanie", and by the end of the last century he became the owner of not only the largest dealer network in the country, but also a deputy. In 2002, UkrAVTO completely redeemed a state-owned stake in ZAZ for just 54 million hryvnias (about $ 10 million). However, there were no other applicants for it. A Korean share in the joint venture in the same 2002 was acquired by the Swiss investment company Hirsch & Cie.
The new owners were actively looking for partners, offering to organize a contract assembly of cars at the Zaporizhzhya enterprise or in its Ilyichevsk branch. In 2003, they entered into agreements with Mercedes-Benz companies (E and M class cars, large assembly in Zaporozhye), Opel (Astra, full cycle, with welding and painting) and AVTOVAZ (VAZ-21093 and -21099) The plant began to emerge from a protracted crisis.
FIVE YEARS OF VICTORY - IN TWO YEARS
After the bankruptcy of Daewoo, its concern General Motors bought its plants in South Korea. Negotiations with the Americans and their new Korean daughter, GM-DAT, brought success: in 2004, UkrAVTO entered into agreements with them for the production of cars, setting a high degree of localization as a condition. The first joint project was Lanos. The degree of its localization in the first year was 50%! It was followed by the "Lacetti" and other models. Things went uphill: ZAZ acquired partners, expanded its lineup.
Cherie Bonus is now one of the plant’s best sellers. Sell it in Russia
Cherie Bonus is now one of the plant’s best sellers. Sell it in Russia. Cherie Bonus is now one of the plant’s best sellers. Sell it in Russia.
In 2006, at the site in Illichivsk, they began to gradually assemble Chinese Cherie cars and I-VAN buses on Indian Tata chassis; in Melitopol mastered the release of a new 1.4-liter engine. In the same year, something completely unusual happened for the CIS automobile industry as a whole: UkrAVTO acquired its first car factory abroad from Poland - FSO (FSO, Fabrika Samochodow Osobowych) from GM-DAT. There was an assembly of Lanos and Matiz, as well as Chevrolet Aveo for Eastern Europe. Many components came from the same enterprise in Zaporozhye.
I-VAN buses (on the Indian Tata chassis) are assembled at a factory in Illichivsk
I-VAN buses (on the Indian Tata chassis) are assembled at a factory in Illichivsk. I-VAN buses (on the Indian Tata chassis) are assembled at a factory in Illichivsk.
Meanwhile, the Chevrolet-Lanos assembled at ZAZ was one of the three most popular cars in Russia. Still - almost a foreign car, but at the price of "tens"! In Ukraine, the model was also called "Daewoo Lanos"; In 2007, she experienced a slight restyling, received a MeMZ engine and a new name - ZAZ-Sens.
In the same 2007, the Ukrainian company United Transport Technologies, one of the founders of which was ZAZ, signed an agreement with the Ministry of Economic Development of the Russian Federation on the industrial assembly of Chevrolet-Lanos, Aveo and ZAZ-Sens cars in the Borsky District of the Nizhny Novgorod Region. The production volume was planned at the level of 25 thousand cars annually.
That year was recognized as the best in the entire history of the Zaporizhzhya Automobile Plant. Then they collected over 280 thousand cars (73% of the total production of cars in Ukraine) of six brands (ZAZ, Lada, Chevrolet, Opel, Cherie, Tata); a quarter of them went for export to a dozen countries. Alas, the "five-year victories" ended already in 2008, when a financial crisis erupted in the world. He hit the Ukrainian auto industry very hard, because sales fell in the main markets - in Ukraine and in Russia. If in 2008 ZAZ collected 259 thousand cars, then in 2009 - 46.2 thousand, that is, 5.6 times less! In the fall of 2008, Tavria was discontinued - there weren’t any buyers left for it … The plant construction project in Russia was also closed. It was almost a disaster.
DELIVERY OF WTO NORMS
Not only the crisis crushed ZAZ, but also the hasty entry of Ukraine into the WTO in 2009: by that time the law “On stimulating the production of cars” was canceled, as contrary to the principles of this organization. The Ukrainian auto industry, although it has grown in strength over the previous ten years (already five plants assembled cars and eight trucks and buses in the country), but not enough to withstand competition with foreigners. Customs duties sharply reduced again at the request of the WTO (for new cars - up to 10%). Meanwhile, the license for the production of breadwinner “Lanos” has expired, but GM has allowed to produce this car under its own brand and sell it through other distributors. Therefore, in the Russian Federation, the model received the name "Chance".
After Ukraine joined the WTO, the large-unit assembly became unprofitable. All models at ZAZ are now assembled in full cycle
After Ukraine joined the WTO, the large-unit assembly became unprofitable. All models at ZAZ are now assembled in full cycle. After Ukraine joined the WTO, the large-unit assembly became unprofitable. All models at ZAZ are now assembled in full cycle.
In December 2010, the first ZAZ-Forza rolled off the assembly line, which in fact was the Chinese Chery-A13. But the bestseller is still the good old "Lanos" in all its variations - "Sens", "Chance" …
Relations with General Motors are developing successfully. The last fruit of the US-Ukraine Union, ZAZ-Vida, was launched in Zaporozhye this spring. No one is hiding that this is the “Chevrolet Aveo” of the previous generation, but at Avto-ZAZ they hope that due to the low price and good build quality the car will find its buyer.
Last year, ZAZ produced 60.9 thousand cars. The main consumers besides Ukrainians are Russians: in 2011, we sold 22.9 thousand Zazov cars (38% of the total production). To a large extent, Russia is saving the Ukrainian enterprise, because the domestic market is changing not in favor of domestic producers. It came to the point that the honorary president of AvtoZAZ, MP Vasadze openly stated that after three years in the WTO, Ukraine received nothing but an increase in imports, and the government has the right to conduct an investigation within the framework of the WTO rules. If it turns out that any of the sectors of the economy suffered as a result of an increase in the import component, Ukraine has the right to introduce a special duty.
Today, automobiles of four brands are in the production portfolio of Zaporizhzhya Automobile Plant
Today, automobiles of four brands are in the production portfolio of Zaporizhzhya Automobile Plant. Today, automobiles of four brands are in the production portfolio of Zaporizhzhya Automobile Plant.
Meanwhile, ZAZ is actively developing its dealer network in Russia; This year they created their own distribution company. The plans are to increase the market share of Zaporizhzhya cars to 1.5%.
True, it is not very clear how the introduction of a recycling fee in Russia will affect the import of cars from Ukraine. But I think they will still be selling well here. Indeed, the love of the “Cossacks” - not the most modern, but inexpensive and easy to maintain - is in our blood …
OUR HELP
Zaporizhzhya Automobile Plant (PJSC "ZAZ") is the largest Ukrainian manufacturer of cars, vans, and buses. Included in the group of companies "UkrAVTO". ZAZ also has a self-supporting enterprise, the Illichivsk Automobile Units Plant (IRAA), and the Melitopol Motor Plant (MeMZ).
