KAMAZ Today
Basic Facts
KAMAZ Group of Companies is the largest automobile corporation of the Russian Federation. OJSC KAMAZ ranks 11th among the leading world heavy truck manufacturers and takes 8th place in the world by production volumes of diesel engines.
In January 2008 KAMAZ produced the 1.9-millionth vehicle since the beginning of production.
In February 2008 the 2.5-millionth engine came off the mother assembly line of KAMAZ-Diesel Inc.
The authorized capital of KAMAZ makes up RUB 35.36 billion. The largest shareholdings belong to the state and commercial banks.
The single production complex of KAMAZ Group embraces the whole technological cycle of truck production – from development, production, assembly of vehicles and auto components to marketing of finished products and service maintenance.
The group of the process chain òincludes 14 large automobile plants. There are the following enterprises located in Naberezhnye Chelny: KAMAZ-Diesel, KAMAZ-Metallurgy (a foundry and a forge plant), Kama Press and Stamping Plant, KAMAZinstrumentspetsmash, Remdiesel. The largest associated companies outside Naberezhnye Chelny are OAO Neftekamsky Automobile Plant and ÎÀÎ Tuimazinskiy Zavod Avtobetonovozov (the Republic of Bashkortostan), Trailer KAMAZ Inc. (Stavropol), OOO KAMAZavtotekhnika (Zainks, the Republic of Tatarstan).
To date KAMAZ Group includes over 150 organizations located in Russia, the CIS and far abroad.
About 50 thousand people work in departments and associated companies of OJSC KAMAZ.
In the first half-year of 2010, KAMAZ Group manufactured and sold products and rendered services for 29 billion 648 million roubles, including 14263 trucks, 12726 units of them in the Russian market. Also, KAMAZ took 55.5% in the segment of over 16 t GVW and 15.5% in the segment of 8-16 t GVW of the Russian truck market. KAMAZ became the absolute leader in the class of heavy trucks in Ukraine as well, having reached 54.9%. For the 1st half-year the company produced spare parts to the tune of 3 billion 662 million roubles and diversified products to the tune of 3 billion 697.
Production
OJSC KAMAZ produces a wide range of vehicles: trucks (over 30 models, more than 400 kits, right-hand vehicles), trailers, buses, tractors, engines, power units and different tools. KAMAZ produces trucks of over 50 basic modifications with diverse configurations. New models and lines of vehicles were added to the product range – from city delivery trucks to vehicles of higher payload used as parts of combinations of 120 t GVW.
KAMAZ traditionally positions itself on the market of trucks of 14-40 t GVW. For the last years the range of the company’s production has considerably increased. The manufacture of medium tonnage vehicles was mastered, a family of high payload vehicles was extended. Besides, there were introduced new vehicles on the market: KAMAZ-43255, KAMAZ-43261 and KAMAZ-63505.
In 2009-2010 KAMAZ started equipping its trucks with restyled cabs. Technical specifications and customer properties of vehicles were improved – both by means of the use of automobile components by the leading producers, and by means of the implementation of KAMAZ’s own original developments. All these measures enabled the company to create the so-called “model range 2010” on which the company’s production program will be based till 2014 when KAMAZ plans to create a brand new model range of its vehicles. In 2012, when Russia adopts technical regulations compliant with Euro-4 international standards, KAMAZ vehicles will have engines meeting this environmental standard.
Quality
The quality management system of OJSC KAMAZ corresponds to the requirements of ISO 9001:2008, GOST R ISO 9001-2008 (ISO 9001:2008) and GOST RV 15. 002 - 2003. Certificates of conformity were issued by Certification Association "Russian Register".
OJSC KAMAZ is the only representative of machine building which in 2006 received the RF Government Award in the sphere of quality; and it is the laureate of the “Russian Trade Olympus” award in the nomination “Competitiveness and Quality”; in 2010 it was entered in the Register of Gold Certificates of Voluntary Certification System "Voennyi Registr" (Military Register).
Assembly Enterprises
OJSC KAMAZ has got assembly enterprises in Vietnam, Iran, Kazakhstan, Pakistan, North Korea. Assembly is carried out completely of components delivered from KAMAZ. The company comes to agreement with foreign partners about the program of production localization in the countries where assembly enterprises are located.
Clients
Our clients are enterprises of all trades where trucks are used, companies busy with cargo transportation, regional and urban fleets of Russia and the countries of traditional sales, natural monopolies, large corporate clients, public enterprises and offices, departments of governmental military and policing branches. The largest customers of the KAMAZ production in Russia are the Russian Ministry of Defense, GAZPROM, LUKOIL, SUEK, TNK.
Outlets
Achievements of OJSC KAMAZ are formed not only due to high quality and technical level of production, but also due to effective strategy on the market. We maintain professional contacts with more than 600 enterprises of Russia, the CIS countries and the far abroad.
The sale geography of KAMAZ vehicles and spare parts is increasing thanks to mastering of new markets: Saudi Arabia, India, Chile, Nicaragua. OJSC KAMAZ became more active on the markets of Iran, Sudan, Afghanistan, Angola, resumed deliveries to Venezuela and Panama. In 2009 KAMAZ delivered vehicles and spare parts for them to 42 countries. The export share in the total sales volume of KAMAZ vehicles made 15%. The export volume formed 3.9 thousand vehicles and vehicle sets of KAMAZ. OJSC KAMAZ is an elevenfold winner of the competition “Best Exporter of the Russian Federation”.
Service Network
The marketing and service network of OJSC KAMAZ embraces all Russian regions and the CIS, and also traditional outlets. 109 dealers and 18 agents collaborate with the company. Over 100 automobile service centers work under the KAMAZ trademark. The technical maintenance system is based on the principles of a united style and maximal approximation of services to customers. The service network is developing in two directions – building of new service centers and reconstruction of existing ones.
Leasing
OJSC KAMAZ is one of the largest Russian companies which offer a service of leasing of vehicles from a manufacturer. The company’s development level, its service and service packages were appreciated both by colleagues and experts. In particular, in 2009, according to the Russian Association of Leasing companies, Leasing Company KAMAZ took 1st place in the segment “Road-Building Equipment”, 3rd one – in the segment “Machine-Building Equipment”, 7th one – in the segment “Leasing of Motor Transport” and 13th one – in the whole Russian leasing market by volumes of a new business. Besides, by version of the experts of Expert RA Rating Agency, the company ranked third among top 20 leasing companies working with medium-sized enterprises.
Joint Ventures
On November 23, 2005 there was opened a joint enterprise of the German concern Zahnrad Fabrik and OJSC KAMAZ – ZF-Kama limited liability company (ZF Kama GmbH). This is the first production created at KAMAZ jointly with a foreign firm and making products under its trade mark. And it is the first example of high quality production of the world level in Russia. The JV annually produces 5,000 gearboxes. There was signed an agreement on increasing production volumes of the JV from 9 to 89 thousand gearboxes a year.
In January 2006 OJSC KAMAZ and the American firm Cummins Inc. signed documents of establishing a joint venture Cummins Kama producing engines of the series B for the Russian market. The authorized capital of the enterprise is $20 million in which the shares of the founders are divided equally. The enterprise will produce Euro-3 and Euro-4 motors with electrical control, in correspondence with ecological standards implemented in Russia.
In December 2007 OJSC KAMAZ signed an agreement with the company Knorr-Bremse Systeme für Nutzfahrzeuge GmbH to establish a joint venture Knorr-Bremse Kama producing brake assemblies in Naberezhnye Chelny with equal shares of the parties in the authorized capital.
On March 10, 2008 Federal Mogul Corporation (USA) and OJSC KAMAZ signed the incorporation documents of a joint enterprise producing piston assemblies with equal shares of the parties in the authorized capital – Federal Mogul Naberezhnye Chelny.
In December 2008, Daimler AG obtained 10% of the authorized capital of OJSC KAMAZ, which was the start of the two automobile producers’ new mutually advantageous partnership. As a result of this strategic partnership, in 2009 OJSC KAMAZ and Daimler AG signed contracts to establish two joint ventures – Fuso KAMAZ Trucks Rus to produce and sell Fuso Canter light-duty trucks in Russia and Mercedes-Benz Trucks Vostok to produce and sell Mercedes-Benz Actros and Axor heavy-duty trucks. In February 2010, Daimler AG increased its share in the share capital of OJSC KAMAZ to 11%. Besides, the European Bank for Reconstruction and Development also obtained 4% of the Russian company’s shares for the benefit of the German partner.
In March 2010, OJSC KAMAZ and CNH Global NV, a member of FIAT Group, signed an agreement to establish a joint venture to produce agricultural and construction equipment. Already in August 2010, CNH KAMAZ JV shipped its customers the first batch of equipment of 20 combine harvesters bearing the trademark New Holland.
Military Equipment
Delivery of our production to the RF Ministry of Defense is another promising area of the company’s activity. In February 2006 OJSC KAMAZ received licences of the Federal Agency of Industry of the RF Ministry of Industry and Energy providing the rights for development, production, repair and utilization of defense equipment.
About 50 thousand vehicles on KAMAZ chassis with excellent specifications form the most numerous group in the vehicle fleet of the Armed Forces of the Russian Federation. KAMAZ vehicles excel the Russian and foreign analogues in their tactical and technical characteristics. Over 350 models of armament and military equipment are mounted on KAMAZ chassis. KAMAZ vehicles are transport facilities of subdivisions and logistic units.
OJSC KAMAZ developed the unified line of army vehicles of the Mustang family with special running abilities and mounting means to the order of the Ministry of Defence. Constituent part and subassembly unification within the limits of the family (to 85%) and including vehicles operated for commercial purposes (to 97%) forms the basis for the country’s mobilization base.
OJSC KAMAZ is currently developing army vehicles of the new generation. By the Decision of the RF Government, OJSC KAMAZ is one of strategically important enterprises serving for the country’s national security.
KAMAZ-master
The racers of the KAMAZ-master team demonstrate a shining example of technical skills and sportsmanship. The crews of the racing drivers of Naberezhnye Chelny became the repeated winners of international rallies and super marathons. The KAMAZ-master team 9 times won the informal world championship among truck producers. KAMAZ confidently converts its sports victories at the legendary rallies Paris-Dakar, Lisbon-Dakar in its business-success.
Advantages of KAMAZ Production:
- Easy in maintenance and reliable trucks of high quality with low operation costs and at most competitive prices;
- Meets all customers’ needs;
- Wide marketing geography – KAMAZ vehicles operate under any road and climatic conditions: in the Northern Pole and in tropics, in deserts and high mountains;
- Developed service network in Russia and the CIS, warranty kilometrage of vehicles is up to 75 km.
All these advantages facilitate KAMAZ to improve its production along with the leaders of the world machine building. OJSC KAMAZ pursues an active, balanced and independent price policy on the domestic market first of all focusing on market requirements and optimum price-quality relationship.
Prospects of OJSC KAMAZ
Prospects of OJSC KAMAZ are described in the company’s strategic development program till 2013 which was approved by the Board of Directors in December 2009. The company plans to reach pre-crisis production and sales volumes by 2013 when its turnover again exceeds 120 billion roubles, i.e. about 4 billion dollars. The products sales volume should reach 46.1 thousand units, proceeds should be 128.9 billion roubles, and the cash flow (EBITDA under IFRS) should be 15.2 billion roubles in 2013.
The program names strategic priorities till 2018:
- the launch of production of a brand new model range of vehicles with customer properties and performance characteristics compliant with the world requirements after 2013;
- the company’s complete adaptivity, its ability to adjust its business according to the situation in the market;
- balanced financial and economic performances above the average performance in the field;
- the global company – its strategic partnership with the global leaders, and focusing on its activity in the key markets.