News

Manager and Person of 2009

Sergey Kogoghin, Director General of KAMAZ Inc. became “The Manager of the Year – 2009” in the Republic of Tatarstan. “BUSINESS Online”, the popular Tatartstan Internet-newspaper and “Vecherniye Chelny”, the Naberezhnye Chelny newspaper also made special mention of the KAMAZ top manager’s merits having named him “The Person of the Year”.

On 28 December the award presentation ceremony “The Manager of the Year – 2009” took place in Kazan. KAMAZ Director General became the laureate in the nomination “For effective realization of the crisis management program”. The prize was presented by Rustam Minnikhanov, Prime Minister of the Republic of Tatarstan. Mintimer Shaymiyev, President of the Republic of Tatarstan participated in the event.

The editorial staff of the Internet-newspaper “BUSINESS Online” named Sergey Kogoghin one of the business figures who managed to show his worth best of all and start the most important tendencies in the Republic.

“In 2008 it seemed to many people that it was necessary to invent a perpetual motion machine at the minimum in order to save Chelny’s automobile giant, – as is written in the edition. – The situation was even worse than at AvtoVAZ, because trucks are goods of investment demand, and what investments can be in the crisis?”

“Nevertheless, – continues “BUSINESS Online”, – Kogoghin managed to mobilize available facilities and assured a tangible state support having received several heavy orders. At the same time he thinks about KAMAZ’s future: he works on renewal of a model line, reduces costs, and adopts Daimler’s technologies.”

It is noteworthy that the editorial staff of the city’s newspaper “Vecherniye Chelny” was the first who named Sergey Kogoghin “The Person of the Year”.

Friday, 12 March 2010

Clear View on Future

Sergey Kogoghin, Director General of KAMAZ Inc. held a press conference devoted to the results of 2009, prospects of work in 2010 and the company’s strategic plans for the next years.

– We solved the main task confronting us, we secured the survival rate of KAMAZ, – said Director General. – KAMAZ may be the only company with satisfactory performance in the Russian automobile industry.

The impact of the crisis hadn’t been easing during the whole year, and KAMAZ, like the rest of producers, didn’t manage to avoid certain losses. But their extent isn’t comparable with many other automobile plants’ loss volumes, because KAMAZ focused on a cut in its expenditure and a growth of a sales share on the market, and began implementing its crisis management measures in good time – before other Russian automobile plants. According to Mr. Kogoghin, it was a circumstance that gave rise to Daimler’s decision to purchase 10% of KAMAZ shares and to conclude a strategic partnership agreement. Dr. Dieter Zetsche, Chairman of the Board of Management (Daimler AG) also told about it at one time.

All key measures of KAMAZ’s crisis-management program adopted in October 2008 are fulfilled. Since then the overall cost reduction has made 10.5 billion roubles. The company’s share on the market grew from 28% to 56.5%. KAMAZ Production System continued developing, and already now it helps to save costs. Labour productivity increased very much, by 20%.

Recounting the key measures of the company’s strategic development program for 2010-2013, Sergey Kogoghin noted that it’s planned to produce and sell 46.1 thousand KAMAZ trucks in 2013, and, ideally, up to 66.5 thousand units. According to Director General, the company is ready for the both versions of Russia’s economic development when going out of the crisis.

– This is a strategy of survival for the sake of the further growth, – said Mr. Kogoghin. – We have got a product for the most capacious segments of the market, we know how to work for export, and we are gradually making progress on those markets where we have never been present before. From our point of view, KAMAZ will go out of the crisis not only financially stronger, but also with a new truck model line. And the company makes everything required to achieve this aim. Even in 2009 – the year which was very difficult for us – we invested 3.7 billion roubles of our own money into development of the company and the basic product. If we hadn’t done it, we would have limited our chances for the further development and would have incurred losses.

Director General expects the further increase in competitiveness on the market. Under these conditions the company won’t strive for the growth of production volumes by all means, but it will focus on production of up-to-date, innovative products of higher quality with account taken of customers’ requirements.

Answering the journalists’ questions, Sergey Kogoghin told about the course of development of a new cab for KAMAZ vehicles.

– I think the general public will see it already at the end of 2010, – said Mr. Kogoghin. – The first vehicles with new cabs will be made in June, and then we will start testing them. We held the first crash-tests of a new cab. The result was beyond our expectations. The cab is comfortable for a driver, meets other safety requirements.

The new vehicles with such cabs, environmentally friendly engines, gearboxes, axles and other modern components will be introduced on the market within the bounds of implementation of corresponding technical regulations in Russia, by an increased overall demand for trucks and a higher purchasing capacity.

Director General of KAMAZ confirmed his opinion of environmentally friendly motor transport which he had passed during parliament hearings in the RF State Duma.

– I’m sure that one of auto manufacturers’ main obligations is to produce environmentally friendly and safe vehicles, – he said.

Sergey Kogoghin emphasized that this was especially important for big cities with their never-ceasing traffic jams on roads. As is known, when a vehicle stays long with a working engine, fuel doesn’t burn completely, and the bulk of hazardous substances is exhausted.

Highly appreciating the fact that Naberezhnye Chelny was included into the list of mono-cities which will be supported by the Russian government in 2010, KAMAZ’s top manager said:

– The city’s economy is based on machine building, the main enterprise is KAMAZ. We influence on the whole city. KAMAZ has always been involved in the city’s problem-solving. All that we do according to the diversification program enables to successfully soften the social blow in our city. For example, in 2009 we established four joint ventures where hundreds of our citizens are now working.

Sergey Kogoghin also noted that another project of diversification of the city’s economy – Kama Industrial Park “Master” – continued developing. Half of the authorized capital of KIP is KAMAZ’s share. Nevertheless, KAMAZ doesn’t derive an economic gain from KIP’s activity. This is a recreation area for medium- and small-scale business in its pure form with a good level of an added value and the soucrce of workplaces for the citizens. KIP “Master” has restored production volumes, increased rented areas and the number of business owners’ objects. 1500 workers are employed there; output of products per one worker makes 3.5 billion roubles a year.

Concerning KAMAZ’s work in the nearest future, Kogoghin said that the company will continue struggling for orders and try to work five days a week. In the second halfyear of 2010 activity on the Russian market is expected to begin. Measures of government support are built into the federal budget.

In conclusion Director General of KAMAZ said:

– I consider that KAMAZ gained additional authority, became more influencial in the world in 2009. To date we’ve got a clear picture of the future.

Thursday, 11 March 2010

KAMAZ Leasing Company is 7 Years Old!

Alfia Kogoghina, Director of Leasing and Sales Development of KAMAZ Inc. receives congratulations

On 23 December 2002 Director General of KAMAZ Inc. signed an order of creation of Leasing Department. At that moment KAMAZ started actively developing its leasing activity.

The activity of the new Department proved to be called-for in the Russian market. Whereas in the first working year its employees concluded contracts to the total amount of 1.1 billion roubles, and 778 units of automotive equipment in all were leased, two years later 2 084 units of KAMAZ automotive equipment were sold to the sum of 2.3 billion roubles for the same period. In 2005 the Department was reorganized into a separate legal entity – OAO KAMAZ Leasing Company.

A year later a regional development policy aimed at availability of the company’s services in regions with great demand, and opening of branch offices in Moscow, Kazan, Krasnodar, Kemerovo yielded tangible results. KAMAZ Leasing Company was recognized “The most dinamically developing leasing company” at the “Russian Financial Elite” awards ceremony.

In 2007 the company continued quickly developing: the number of concluded contracts grew up to 762, and their sum increased up to 9.0 billion roubles. In 2007 new subsidiaries were opened in Yekaterinburg, St. Petersburg and Nizhny Novgorod. Subsidiary sales offices were created on the basis of KAMAZ dealers in Moscow, Samara, Syktyvkar, Ufa, Kazan, Khabarovsk.

The company obtained the global recognition: in 2007 its activity was awarded with the European Quality international award at the summit of business, science and art leaders in Oxford (Great Britain). Besides, KAMAZ Leasing Company became the laureate of the annual national award in the business sphere “Company of 2007”, and Expert RA rating agency awarded the rating “A.rm” to the company. In 2008 it became “The most reliable Russian leasing company” in the leasing services market.

During four years the company has been among the top 20 largest Russian leasing companies and among the top three leaders in the truck leasing market. From 2002 to 2009 OAO KAMAZ Leasing Company concluded more than 3 thousand contracts to the amount of 35 billion roubles, shipped over 19 000 units of equipment, including over 1800 units in the crisis 2009.

Wednesday, 03 March 2010

Development Strategy

On 18 December the company’s Board of Directors held its meeting under the chairmanship of S. Chemezov, Director General of SC Rostekhnologii, Chairman of KAMAZ Board of Directors in Moscow’s representative office of KAMAZ Inc. One of the main issues on the agenda was the discussion and approval of the company’s Strategic Development Program for 2010-2013.

The program is based on the forecasts of Russia’s Ministry of Economic Development and the researches of the chief world and Russian financial institutes, as well as on KAMAZ experts’ estimations, and is interconnected with the strategy of recovery of the Russian economy and mechanical engineering sectors. The basic projection of the Program is that a tangible economic expansion of Russia and countries traditionally importing KAMAZ automotive equipment will start in 2011. The sales volumes in the domestic and foreign markets will completely recover after 2013. In point of fact, this is a strategy to go out of the crisis and start developing.

The guidelines of the previous Strategic Development Program planned for a period till 2008 are on the whole achieved. The plans for 2009 are basically fulfilled.

The main strategic aims of the new Program are to maintain the company’s solvency till 2013 in the period of the economic crisis, to considerably improve consumer properties of the model line, to improve competence of the personnel and its motivation, to focuse on the key competences and to share investment outlay with strategic partners.

In 2010 KAMAZ Inc. is expected to sell 27.2 thousand vehicles, and in 2013 the sales volume will supposedly reach 46.1 thousand units. Proceeds must make up 128.9 billion roubles in 2013, and a cash flow (EBITDA, IAS) will be 15.2 billion roubles.

The Program also describes KAMAZ’s long-term objectives. The main strategic priorities till 2018 are:

– production of a new model line (after 2013). These vehicles will possess consumer properties and engineering-and-economical characteristics meeting new requirements;

– the company’s perfect adaptivity, ability to change business depending on the situation in the market;

– effectiveness of activities is balanced financial and economic indicators not lower than the average indexes in the sector;

– the company’s globalization is a strategic partnership with world leaders, focusing on the key markets. KAMAZ Inc. adopted the following key competences:

– development, production and after-sale service of trucks with GVW of more than 8 t and their major units;

– production and after-sale service of buses, special equipment and trailers, metallurgical blanks;

– development of production of trucks, road-building and agricultural equipment up to world standards jointly with strategic partners.

The possibility of outsourcing of nonferrous castings, small forgings, all-purpose standard components production is currently being concidered. New kinds of business and production will be introduced. In particular, production of units of the world standard (engines, gearboxes, brake gears and details of a piston-cylinder group), as well as of road-building and agricultural equipment will be developed by KAMAZ jointly with partners in future.

An investment budget for the planned period forms 19.7 billion roubles. The main areas of investing correspond with the company’s key competences: a new model line of Euro-4 and Euro-5 engines (after 2013), cabs, axles, gearboxes, transfer cases. Essential investments into re-engineering of production, information technologies, improvement of quality and cutting of costs are also planned.

The main motto of the Program is renewed KAMAZ which strengthened its leading positions in the Russian market and integrated into the global automotive engineering sector.

Tuesday, 02 March 2010

New Strategy of KAMAZ Inc. is Adopted

On 18 December the regular meeting of KAMAZ Board of Directors was held in Moscow.

At its last meeting in 2009 the company’s Board of Directors discussed and approved the business plan of KAMAZ organizations for 2010.

Touching upon the current condition, in the reports on the business plan for 2010 it was mentioned that according to the results of 11 months of 2009 KAMAZ’s share in the Russian market of trucks with GVW of 14-40 tonnes made up 56.5%. The company achieved the highest growth of its share – 27.9% – in this class in comparison with the analogous period of 2008 among all players in the Russian market.

As a matter of fact, recession of the Russian automobile market came to an end, and in November the sales volumes in it grew by 15% for the first time since the beginning of the crisis. However, a stable restoration of the market will start only in the third quarter of 2010. On the whole in 2010 the sales volumes in this class of truck equipment will grow only by 2 thousand vehicles – from 37 thousand units in 2009 to 39 thousand units. It’s expected that KAMAZ’s share will make about 60% in 2010.

Hence, the business plan for production and sales in 2010 was approved at the rate of 28.2 thousand units – with account of medium-tonnage vehicles. 24 thousand units of them will be sold in the Russian market, 4.2 thousand units will be sold in foreign markets.

The second important decision of KAMAZ’s Board of Directors was the approval ofKAMAZ’ strategic development program for 2010-2013. Its clauses cover a four-year period during which, according to the conservative forecast of Russia’s Ministry of Economic Development and researches of the chief world and Russian financial institutes, the country’s economy and, naturally, volumes of truck sales in the domestic and foreign markets must cpompletely recover after the crisis. The program also contains the description of KAMAZ’s long-term objectives – till 2018.

Board of Directors also examined the question of observance of ethics and legality in KAMAZ Inc. It’s planned to adopt the relevant corporative document in future.

Monday, 01 March 2010

Exclusive for Russian Forest

In December the traditional exhibition “Russian Forest” was held in Vologda where KAMAZ Inc. and OOO KAMAZ-LEADER, KAMAZ’s official partner in Vologda Region, presented new models of jointly produced timber-carrying equipment.

Triaxial all-wheel-drive short loggers on KAMAZ-65225 chassis with an Epsilon hydraulic manipulator and on KAMAZ-43118 chassis with an SF-65 hydraulic manipulator and a short log trailer 84752 specially produced for operation under north conditions, and also a diesel electro-aggregate AD 100S very useful for regions with a rigorous climate and ambient temperature difference, attracted the visitors’ and specialists’ great interest at the exhibition.

Development and production of various kinds of specialized equipment for timber industry is one of the most promising and quickly developing areas of KAMAZ main activities. To date the whole line of specialized vehicles on KAMAZ chassis is offered to loggers and timber product carriers. Most of new and production KAMAZ models, including those with high payload, have got modifications designed for mounting of timber special equipment. All-wheel-drive chassis KAMAZ-53228 (6x6), KAMAZ-43118 (6x6), single-drive KAMAZ-65115 (6x4) and vehicles on the basis of “heavy” chassis KAMAZ-6520 (6x4), KAMAZ-65225 (6x6), KAMAZ-65224 (6x6), etc. are more often used. These are logging truck-and-trailer units and short loggers with and without a hydraulic manipulator, prime movers, chip trucks and metal carriers. Customers choose the needed kitting of a vehicle and fitted optional equipment themselves.

With a wide range of produced equipment, KAMAZ and its partners continue developing new models. Short loggers on the basis of triaxial all-wheel-drive chassis of high payload KAMAZ-65225 and KAMAZ-65224 (6x6) have been developed, and their batch manufacturing has been started lately. The diesel electr-aggregate AD 100S-T400-2RM73HL is built on the basis of KAMAZ-740.19-200 serial engine and serves as an emergency supply or standby power supply for customers. It generates altenating three-phase current with the voltage of 400V and the frequency of 50Hz. It can operate at the ambient temperature from +50°Ñ to -50°Ñ and the humidity of 98%.

Saturday, 27 February 2010

KAMAZ: Again in Nizhny Tagil

KAMAZ Inc. demonstrated and tested military equipment and armaments on the testing area of Federal State Enterprise “Nizhny Tagil Institute of Metal Testing” on 9 December within the bounds of the All-Russian conference held under the guidance of the RF Prime-Minister Vladimir Putin.

On that day Sergey Kogoghin, Director General of KAMAZ Inc., visited FSE “NTIMT” with its unique exhibition and testing complex. It should be recalled that the company had participated in all traditional exhibitions of armaments and military equipment which had been held during last 10 years on the testing area in Nizhny Tagil.

KAMAZ-6350 artillery tractor on the basis of eight-wheel chassis, its fellow belonging to the line of “Mustang” army vehicles KAMAZ-5350 armored vehicle with an additional protection set and a functional unit, the representative of the line of high payload trucks KAMAZ-65224 side prime mover and KAMAZ-6560 side prime mover comprising the best qualities of vehicles of the above mentioned lines demonstrated their riding performance, technical and tactical capabilities in front of the participants and guests of the conference. The specialists also saw the modernized version of KAMAZ-43269 “Vystrel” armored vehicle.

For the first time at KAMAZ exhibitions and shows another producer’s vehicle – IVECO-65E19WM multifunctional low payload vehicle – was demonstrated next to the company’s own models. The fact is that, in accordance with the joint resolution of KAMAZ and Russia’s Ministry of Defense, the availability of vehicles by this Italian concern for the Russian Armed Forces is currently being determined. KAMAZ’s part of the demonstration and testing program at the conference in Nizhny Tagil was concluded with the demonstration of KAMAZ-4326 VK sports car.

Friday, 26 February 2010

Best Product by KAMAZ is of European Class

The Ministry of Industry and Commerce of the Republic of Tatarstan and the Federal Government Institution “Tatarstan Center of Standardization, Metrology and Certification” named KAMAZ-65222 dump truck the best product of the republic in 2009 in the nomination “Production for Industry and Engineering”.

Besides, this KAMAZ vehicle became the finalist of the contest of the program “100 best products of Russia” for achievements in the sphere of quality assurance of domestic products. Its organizers informed the company’s managers about this fact.

KAMAZ-65222 all-wheel-drive three-axle dumper truck with single-tire wheels was a new product of serial production in 2009. The first prototypes of the new model were produced in 2008 and demonstrated at Moscow exhibitions “Construction Equipment and Technologies” and “Commercial Transport” in 2009 where they were highly esteemed by specialists and customers.

The vehicle with payload of 19.5 tonnes is equipped with KAMAZ-740.60-360 brand engine of 360 h.p. equipped with Common Rail fuel-handling system with electronic control, and also with ZF 16S1820TO 16-step gearbox, ZF PASSAU VG 1600/300 two-speed transfer case. The standard back dumping rectangular cross-section platform has got the capacity of 12 cubic meters. Mounting of a platform with capacity of 16 cubic meters is possible on a customer’s request.

Production vehicles KAMAZ-65222 made in 2009 were equipped with modernized cabs. Since January 2010 they have been equipped with restyled cabs like all modern models of KAMAZ. GRAMMER pneumatic seats make driving more comfortable and four-point air suspension of cabs enables to considerably lower vibration and make driving smoother. A new dash panel makes the KAMAZ cab more like an airliner pilot’s workplace.

With cross-country capacity and payload, KAMAZ-65222 dumper truck and its chassis as a part of special equipment are especially effective by operation under difficult road conditions. This is a vehicle of the European class and quality.

Friday, 19 February 2010

KAMAZ Celebrated Day of First Engine

34 years ago, on 4 December 1975, the first diesel motor for future production trucks of a new brand was assembled on the temporary line of the assembly and testing department at the KAMAZ engine production plant.

On that day starts the history of KAMAZ engines conveyor 4 years ago, on 4 December 1975, the first diesel motor for future production trucks of a new brand was assembled on the temporary line of the assembly and testing department at the KAMAZ engine production plant.

On that day starts the history of KAMAZ engines conveyor assembly at the KAMAZ heavy-duty trucks production plant – now KAMAZ Inc.

More than two months had been left then till the moment when the first KAMAZ truck officially went off the assembly line of the automobile plant. Since then KAMAZ-Diesel have already delivered about 2.6 million engines to its customers – to the mother assembly line and repair departments of KAMAZ and in the country, security, defence and law enforcement agencies and other state structures, automobile enterprises and all foreign customers in Russia, the CIS countries and on other markets.

Wednesday, 17 February 2010

KAMAZ is Company of the Year 2009

On 3 December the national title “Company of the Year 2009” was endowed upon KAMAZ Inc. was in the Hall of Columns of the Hause of Unions in Moscow.

The contest for the honorary title “Company of the Year” instituted by RBC Group of Companies was held for the 11th time this year. KAMAZ became the winner in the nomination “Automobile Industry”.

Since 2002 the prize “Company of the Year” has been awarded under the auspices of the Ministry of Economic Development and Trade of the RF, and the prize-winners have been given the status of a priority enterprise for realization of investment projects. As a matter of fact, this large-scale event sums up the results of the business year and creates a new positive image of the most successful enterprises of the Russian business promoting new standards of business ethics in the country.

The global economic crisis which erupted in 2008 and lasted during the whole 2009 revealed the leaders of the domestic economy able not only to survive under the economic recession conditions, but also to successfully compete on the market integrating into the global economic system, mastering cutting-edge business technologies and using them in the Russian reality.

Tuesday, 16 February 2010