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Gorky Automobile Plant

Over its 75-year history Gorky automobile plant has developed and mastered production of 6 generations of trucks, 6 generations of middle class passenger cars, 3 generations of E-class passenger cars, 6 generations of wheel armored troop-carriers and track-type vehicles. GAZ workers have developed more than 40 base models of trucks and passenger cars, military and special purpose vehicles and buses, hundreds of their modifications and pilot designs. During these years the plant has manufactured more than 17 mln. passenger cars and trucks.

The acronym GAZ can stand for Gosudarstvennye avtomobil'nye zavody (State Automobile Plant) and also Gorky Automobile Plant. GAZ share in vehicle production in Russia comes to: 5% - passenger cars, 55,6% - trucks, 47,9% - buses. Annual production volume amounts to more than 230 000 vehicles, out of them - 53,4% - trucks, 17,2% - buses, 26,7% - passenger cars. Annual turnover is approximately 60 mlrd. rub.

Gorky automobile plant is a traditional supplier of trucks for agriculture, reliable all-drive trucks for the army, light commercial vehicles of GAZelle and Sobol vehicle families for small- and medium-scale business, and middle class passenger cars Volga. Besides, a production of all purpose Tiger vehicles was set up for law enforcement authorities. Production of special purpose vehicles model range is ramped up: municipal vehicles and road-building machinery, mobile shop and mobile laboratories, ambulance vehicles and CIT vehicles, tank trucks and fuel servicing trucks.

GAZ is the first Russian enterprise in which labor management production system accepted in major automobile companies has been functioning for 3 years already. As a result, from the moment of its implementation at GAZ daily production output has increased, quality has improved, costs and volumes of goods in process have reduced. Working conditions and production culture have moved to a new level.

Gorky automobile plant quality system is certified according to national and international standards ISO - 9002, assigned by experts SATR - Fond (Russia) and TUV Management Service GmbH (Germany). GAZ owns the certificate of conformity with the international ISO 9001:2000 standard requirements for designing and development, body assembling production and sales of passenger cars, trucks and buses, and also for production and sales of nonferrous and alloy foundries and billets.

Gorky automobile plant is constantly developing its divaricated dealer network that covers the whole territory of RF. Within the last 1,5 years 37 new authorized automobile plant dealer centers that conform to the company technical requirements, quality of provided services and corporate design were opened in different regions of the country. In the nearest 2 years it is planned to open 158 centers all over Russia.

GAZ vehicles are well-known and have always been a success in many countries. For the last 20 years Gorky automobile plant has exported over 250 thousands of various models to over 30 countries. In the latest years annual export share amounts to approximately 40 000 vehicles. Success in the field of export policy was estimated at its true worth by Ministry of economic development and Trade RF that for two years in a row (2005 and 2006) gives the title "Best exporter" to Automobile plant Russian Vehicles Trading House for high foreign - economic activity figures. The company is planning to build new export policy according to which new created foreign GAZ representations will carry out sales activities. The main task of each representation will be analysis of holding company export possibilities in different regions and setting up relations with potential and existing dealers.

From 2005 the plant is included in GAZ Group - first-rate automobile holding that comprises four bus plants (PAZ, GolAZ, KAvZ and LiAZ), Kanashsky aggregate plant, Saransky dump truck plant, Fuel and diesel equipment plant in Yaroslavl; and also Ural Automobile plant JSC, Zavolzhsky creeper tractor plant.

GAZ Group set a course to extend the scale of business, turn the company into global member of international automobile market both as manufacturer and provider of services. It is planned to invest 30 mlrd. rub. in holding companies till 2011, 1,6 mlrd. out of this sum is invested in the company's main base development - in Gorky automobile plant. In 2007 this holding will include powerful engineering centre that will be in charge of new model development for all 20 plants that from a part of the Group. It's planned to invest heavily in R&D, renovate model range and develop new models.

Over the recent year the following projects were implemented within the company: light commercial vehicles production modernization and output expansion, production of Volga vehicles with Daimler Chrysler engine, ramping up production capacities of Valdai type medium weight truck and all-purpose Tiger vehicles, introduction of Euro-2 and Euro-3 standards, ecological programs.

In April 2006 GAZ Group signed an agreement with Daimler Chrysler corporation for the purchase of Sterling Heights Automotive plant production facilities (Michigan, USA), where Chrysler Sebring and Dodge Stratus are manufactured, together with the license for this production. At present the equipment is being transferred to Gorky automobile plant where a separate assembly facility that conforms to international standards in full will be organized. Production and sales of these models will be carried out under Gorky automobile plant brand. First output of new vehicles is planned for the beginning of the year 2008. At first production facilities will amount to 65 000 passenger cars per year. Component suppliers will be retained in full; by 2009 GAZ is planning to localize 50% of new production.

In July 2006 GAZ Group acquired British LDV Holdings that manufactures modern light commercial vehicles Maxus. New design, administrative and production resources, obtained as a result of this acquisition, will allow Russian company to develop and launch demanded modifications. After passing the necessary testing, adjustment and certification Maxus vehicles will be imported from Great Britain, and in the nearest 2 years their production will be set up in Nizhny Novgorod. Business plan provides for production of 3 000 Maxus vehicles of Russian assembling in 2008, in future the company is planning to reach greater production volumes.

As of 2007 the number of employees working at automobile plant equals to 50 000 people. Average monthly wages came to 12 300 rubles in November 2006. Social support programs for automobile plant workers, veterans, young specialists, handicapped, mothers with many children are being actively developed. The plant fulfills its obligations as per collective agreement for which 500 mln. rubles are annually provided. Tax allocations to all-level budgets are constantly growing: in 2005 6 mlrd. 634 mln. and 655 thous.rub. had been transferred by the company and its subsidiaries to budget and off-budget funds and in 2006 this sum increased to 9 mlrd. rub.