Category: Automakers

GAZ's New Strategy. Customization For The Client

Video: GAZ's New Strategy. Customization For The Client
GAZ's New Strategy. Customization For The Client
GAZ's New Strategy. Customization For The Client

Nevertheless, the release of one model, albeit in demand, could not keep the whole plant afloat, and its future was foggy.

Today, the Gorky Automobile Plant seems to have a chance. More recently, RusPromAvto holding, which included GAZ in recent years, has received a completely new name - GAZ Group. This is not just a change of sign, but a sign of a new strategy, which was adopted and approved by the company's shareholders.


Calling foreigners to Russia is not a new idea. They resorted to this even in Ancient Russia. Apparently, following the "tradition", GAZ found its "Varangian" in Scandinavia. Last year, 35-year-old specialist from Sweden Eric Eberhardson, who previously served in the leadership of the Volvo concern, became the deputy general director of RusPromAvto for strategic development. Today it is he who is responsible for strategic development in a holding uniting GAZ, PAZ, LiAZ, Ural and another dozen engineering enterprises, for strategic development.


The result of the first half of the work was the strategy proposed by Eric Eberhardson. According to him, she can (and should!) Help a giant holding company, which employs about 150 thousand people, bring its products to the world level. And the association itself, he believes, in five years should generally become one of the global leaders in the automotive industry.

All the conditions for this, according to the Swede, are. So in the last year bus production and sales sector, the GAZ Group ranks third in the world (18, 500 cars); the world market leader Mercedes is only one and a half times ahead of Nizhny Novgorod (in terms of quantity, of course). In addition, GAZ is in the top ten global manufacturers of commercial vehicles and medium trucks. In fact, the only direction where the car factory cannot compete not only with world but also leading domestic manufacturers is cars. Volga, of course, is still finding its consumer (about 55 thousand were sold last year), but demand for them is steadily declining.

“First of all, we have formulated our market priorities,” says Eric Eberhardson. - Firstly, this is the production of various commercial models that allow customers to solve their transport problems. It is here that we are the most powerful and do not intend to give our niche. On the contrary, we want to expand it - first of all, mastering foreign markets. Secondly, we will actively develop engine building and, thirdly, the production of special equipment.


Having decided that commercial vehicles would be the trump cards of the GAZ Group, we had to go further - to determine how to develop this business. Now we can answer this question: the main thing that will be changed at the Gorky Automobile Plant literally tomorrow is an approach to the component problem.

“According to the previous scheme, at our enterprises 70–80% of the production cycle was spent on the manufacture of components and substantially less on the production of final products,” E. Eberhardson explains. - In the West, the opposite. We were convinced of the effectiveness of the foreign model from our own experience: in the bus division, the bulk of our share already falls on bodywork and assembly - imported components are used to a large extent there. We intend to use this experience at other enterprises of the holding.

From now on, a completely new structure is being built in GAZ Group with the following units: Buses, Trucks, Light Commercial Vehicles, Cars, Engines, Automotive Components and Special Equipment. At the same time - a complete separation from those who produce components. “Assemblers” are free to buy components and parts both inside the holding and from independent suppliers, but now they, and they alone, are responsible for the entire production chain: planning, purchasing high-quality components, assembling cars, further developing the business, etc.

Component manufacturers also gain independence. They can supply their components to any plants, including competitors, and they will have to compete on a common basis for GAZ Group orders. The production of components thus functioning, according to the authors of the strategy, can become very cost-effective. Judging by the experience of world manufacturers, the profit from the production of components usually amounts to 50-100% of the assembly car itself.

By rebuilding the system of relationships within the holding and defining strategic objectives, GAZ Group can more easily and logically solve tactical tasks. Say, today the lion's share of planned funds allocated for development can be set aside for the creation of a line of new diesel engines, both licensed and in-house. Now GAZ is producing a completely modern diesel engine GAZ-560 (Steyr), and recently an agreement was signed on the production of engines for heavy vehicles and buses in Yaroslavl under the license of the French Renault Trucks. The leaders of the GAZ Group do not hide the fact that they are still conducting a series of negotiations. The ultimate goal is to have our own production line of modern diesel engines for any car. This will open up unprecedented prospects for the plant.

An engineering center stands out as an independent unit, which will be able to fulfill orders both for business units of the entire Group and take them on the side, although so far there are enough own affairs. Say, after three years, the successor to the current Gazelle should be on the conveyor, and then the term of the "serial life" of the car will be reduced to the average European - five years. By the way, the owners allocate a considerable amount of their own funds for the development of new models for the next five years - $ 1 billion. Apparently, they will also attract additional loans.

“If the state really decided to provide soft loans in the form of assistance to the auto industry, we will take advantage of it, although we do not ask for any additional preferences,” says Vladimir Torin, head of the GAZ Group’s public relations department. - But so far no one has addressed us with such proposals. We have our own program, and we will work on it.

And what about Volga?

The rumor that GAZ was discontinuing the Volga had the effect of an exploding bomb. In fact, it was a little about something else - that in the current strategy of GAZ, the production of cars is not a priority. In order for Volga to survive in the Russian market, huge investments are needed, and it is not known whether they will pay off.

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