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GAZ Group Looks to Drive RUB 5.3bn Cost savings This Year

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2015-06-22

GAZ Group, the Russian automaker, is seeing a market continually buffeted by economic headwinds largely caused by external political factors and which has seen consumer confidence plummet along with sales.

 

GAZ has revamped its line-up and last year alone either launched or modernized a product every month, while also increasing its export markets from 23 countries in 2013 to 33 in 2014.

 

"It is absolutely clear the Russian market is too small for GAZ Group - there is no way we could grow our market share on the Russian market alone," said GAZ Group president, Vadim Sorokin. "We are still planning to continue growing in our country,through extending our product offering, for example with light commercial vehicles. We are seriously aiming to increase our exports."

 

"We mostly look at India while prospective markets include the Middle East, Africa, Latin America and South East Asia as well as Eastern Europe." "Our ambition is quite big - when you start to invest it is stupid to only invest in product only to satisfy the Russian market."We plan to save RUB5.3bn this year - equivalent to our total investment programme for 2015."

 

GAZ also currently cooperates with three overseas automakers; Volkswagen, Daimler and General Motors creating new assembly and welding shops at the Nizhny Novgorod site, as well as modernizing the paint facility and upgrading the logistics system.

 

The company also has joint ventures in the plant with exhaust systems provider, Bosal and Swedish fastener manufacturer, Bulten, with the latter encompassing cold heading to thread rolling and heat treatment.

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