By wedding is ready.

For the wedding is ready
Andrew Vinkov
On the basis of car design Volga Siber, closed at the end of last year, will run two car assembly production — with the German Volkswagen Group Corporation and c of the American General Motors. At their expense GAZ Group expects to recoup hundreds of millions of dollars invested in equipment and reconstruction of the plant
Andrew Vinkov
"The Wedding" — the so-called slang for the production process the docking of the car body and chassis. The shop car assembly JR-41 in Nizhny Novgorod "wedding" was almost eight months. JR-41 — the code name for the project Volga Siber. Last kits Siber was collected October 30, 2010, and since the start of mass production in July 2008 was produced 9 million cars Volga Siber. More it will be performed.

During our tour of the workshops JR-41 of this author did not leave the ambivalent feeling. On the one hand — a sense of loss. Empty shop, not a soul, but only the minimum equipment turned off robots. Russian carmakers have not become self-passenger car design, quality and competence far surpassing other Russian production of passenger cars. On the other — glad that GAZ Group was able to quickly get out of the crisis and even a financially unsuccessful project as Volga Siber, ready to turn into something effective and worthwhile. "Wedding" box Siber in the near future may take four car models from two manufacturers — Volkswagen Group (VW) and General Motors (GM). The former head of division cars GAZ Group, now a managing director of GAZ automobile plant Leonid Dolgov tells how to download these planned capacity for the new assembly project of Volkswagen and Skoda. Here and in the other two neighboring shops will soon begin welding, painting and assembly of cars Volkswagen Jetta, Skoda Octavia and Skoda Yeti.

Yeti in a new place
Under the agreement, Volkswagen Group and GAZ Group in Nizhny Novgorod will be organized complete production cycle. Start of production of Skoda Yeti is scheduled for the fourth quarter of 2012 (see table).

The production capacity of the project contract assembly for VW in the Lower yield 110 thousand cars a year, which is comparable with current capacity of Volkswagen in Kaluga. But the investment in it will be 200 million euros, of which 115 million will invest Volkswagen Group. The rest will take the GAZ Group. This is something beneficial to the project and VW: Saves time and money to expand capacity in Russia. Still, after Volkswagen Group investments in comparable in power production in Kaluga, today about 570 million euros. Time in the growing Russian automotive market is also important. Expand Production in Nizhny Novgorod, you can quickly. For full CKD-assembly (which is important in the duty-free treatment under the industrial assembly of 166 government regulations) there is almost ready, except for welding shop — this is the only capital-intensive investment. Paint shop and assembly shop JR-41 without a deep refinement and cost can be used under a joint project with VW. For example, in the former assembly shop JR-41 here and there will have to be replaced by a specific equipment so buy a new tool.

Apparently, these will be the main shop and GAZ Group's investments in the project. "GAZ will work on a commission basis and receive payment for the assembly and for the use of its facilities — explain in GAZ Group, — VW will buy specialized equipment that will be installed on GAZ-trained areas. GAZ is investing in training areas and universal equipment. " That is still reeling from the crisis group GAZ joint project with VW in financial terms will not be a burden.

Moreover, the remaining operating assets for the production of Volga Siber (their capacity was 150 thousand cars per year) will be involved in another joint project, which was announced in February this year. Then GAZ Group and General Motors signed an agreement on contract assembly of a new generation of Chevrolet Aveo cars in Nizhny Novgorod. Start of production has been scheduled for mid-2012, and its putative annual volume should reach 35 thousand sedans and hatchbacks Chevrolet Aveo. For this project, do not even need to purchase new welding equipment — krayslerovsky old shop, which has been taken out of the United States under the project Siber, fits the technical parameters of the GM. Curiously, painting Volkswagen, Skoda and Chevrolet Aveo will be made in the same shop, which was established once the needs of the Volga Siber.

Broken record USSR
In GAZ Group does not deny that the car Volga Siber not recoup the investment. Nearly $ 200 million invested in the project, brought a loss. There are several reasons. "We have not been able to curb the rise in prices for imported parts in 2008, when the devaluation of the ruble, and misjudged the market prospects of the vehicle, in addition to the crisis we were not able to spend money on its marketing and promotion", — says Leonid Dolgov. "But now GAS overcome the crisis — said at a press conference, party chairman of the board of directors of Gaz Siegfried Wolf. — We have become stronger after him. We believe that in the contract assembly we can make. " "We have one of the best production lines in Russia, a team of competent professionals ready" — confirms Bo Andersson, President of GAZ Group.

The economic aspect of project contract assembly is now more important than ever. Another year and a half ago, GAZ Group was close to bankruptcy. Then, at the end of 2009, the company publicly addressed the creditors with a request to restructure the loan and bond obligations. Total debt reached almost 45 billion rubles, while the end of 2009, she had to return to creditors about 36 billion All this was due to a critical GAZ Group drop in demand for its cars and buses (two to four times in different segments). The company then predicted that in the next three years, it will generate losses. In fact, the crisis has forced GAZ Group to seek help from the state, and simultaneously look for internal reserves — dramatically reduce costs and improve productivity (see Figure 1). It was possible to do both, and ahead of forecasts. GAZ Group promises to profit in its report under IFRS for 2010, which it plans to release in July.

This year, the Nizhniy Novgorod area, which is headed by Leonid Dolgov, sets performance records. While working in one shift production workshop of commercial trucks GAZ (LCV «Gazelle") last month set a record in the history of the production company — 490 cars per shift, although in the past it was considered a record production of 380 cars per shift. This performance was not even in the best years of the Soviet Union.

It must be said that the production site of GAZ Group in Nizhny Novgorod (formerly Gorky Automobile Plant) is a key to the company's business. Specializing in the production of light commercial vehicles (LCV) and medium-duty trucks, it provides about 40% of group revenues. The rest of the business — the production of buses, four-wheel drive truck "Ural", motor factories, businesses involved in the production of road-building machines that exist apart on other sites. The main product groups, cars "Gazelle", continues to be a cash cow. And the production is growing at a rapid pace for the second year after the crisis (see Chart 2). And with the new project contract assembly of passenger cars share the Nizhniy Novgorod area in the business of GAZ Group, is likely to grow even more.

But here's the curious thing. Despite the "demise» Siber, the experience of this project has already been found and replicated across the GAZ. "Almost all of the quality system has been moved from the site to other Siber assembly capacities GAZ Group — says Leonid Dolgov. — W
e have implemented the input control components, has launched a clear, coherent system of quality control stations at all process stages of production, invested in modern test bench, built a camera sprinkling in the assembly shop LCV and trucks, and implemented a system of auditing the eyes of consumers and the daily collection and analysis of information on dealers all warranty cases. As a result, for example, the number of defects per thousand vehicles during the two-month operation (IPTV) at the "Gazelle" halved — to 120-130. Although this is not the limit for Volga Siber this figure was lower in a few more times. "

There is reason to believe that the experience of contract assembly with Volkswagen, where standards are more stringent, GAZ Group will provide additional ideas for improving the competitiveness of its own products.

Moscow — Nizhny Novgorod

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