In 2014 ‘Avtovaz’ will start an active renewal of its model lines

At the last Board meeting in Paris the management of the company decided to start producing a new BM-Hatch car and its crossover version B-Cross (B0 platform).

Chairman of the ‘Avtovaz’ Board Sergey Chemezov (‘Rostec’ corporation Director General): “The renewal of the model lines as a part of the investment program implementation will allow ‘Avtovaz’ to strengthen its positions as Russian leading car manufacturer. In 2014 the new facilities for the H4 engines production will be launched. These engines will power new promising B and C class models. The program also provides for modernization and development of company’s facilities at the Izhevsk and Togliatti plants”.

For the last 8 months of 2012 ‘Avtovaz’ has sold 392 967 LADA cars, 43 993 of them were exported. “Net profit reached RUR1.3 bln, allowing to predict positive financial results for 2012”, - said ‘Avtovaz’ executive vice president on financial and corporate management Oleg Lobanov.

The Board approved his proposal on another wage indexation. “From October 1, 2012 wage rates and salaries of the ‘Avtovaz’ employees will be increased by 8%”, - Mr. Lobanov said.

 Board members have also discussed the Memorandum of Understanding between ‘Avtovaz’, ‘Asia Avto’ JSC and ‘EPTIC’ JSC, which was signed on September 19. It determines direction and parameters of the new facility construction at the ‘Asia Avto’ plant in the city of Ust-Kamenogorsk.  By 2014 the creation of welding, coloring and car assembly facilities is planned. The plant’s capacity will exceed 60 000 cars a year. In the second phase of the project it is planned to produce 120 000 car a year. The product line will be including LADA Granta and new LADA Kalina. Other Renault-Nissan Alliance and ‘Avtovaz’ models may be produced (SKD cars assembly).

Today LADAs are the best selling cars in Kazakhstan. In 2012 it is planned to sell 35 000 LADA cars and occupy 37% of the car market. The construction of the new enterprise will strengthen the position of ‘Avtovaz’ on the Central Asian and South Caucasus markets.

‘Avtovaz’ is one of the major auto makers in Europe. Today its facilities allow producing 800 000 cars and knockdown kits a year. Since 1970 ‘Avtovaz’ has produced over 27 million LADAs. ‘Avtovaz’ produces autos costing from 200 000 to 500 000 rubles.

‘Rostec’ was established in November 2007 to support Russian industry in developing, producing and exporting high-tech industrial products. The corporation includes 22 directly managed companies and 17 holdings, of which 12 are in the defence sector and five in civil industry. In total ‘Rostec’ comprises about 600 companies. The corporation has its headquarters in Moscow, and has a presence in 60 of Russia’s regions. It exports its products to 70 countries.