OREANDA-NEWS. On 20 August 2008 was announced, that active movement of KAMAZ shares on the equity market is the order of the day. But when IC Troika-Dialog bought the most part of the shares – it became clear that the process of their consolidation would sooner or later lead to some qualitative changes.

It is announced that the largest auto maker in the world – Daimler is ready to buy 42% KAMAZ shares. On these days the German experts are analyzing almost all aspects of activity of the enterprise. The final decision about the future will be made on the grounds of the conclusions they will make as a result of this work. It is supposed to happen not earlier than October. And, nevertheless, the issue of the further prospects of KAMAZ worries everybody who is not indifferent to the fate of the Kama auto giant. In this connection Director General of the company Sergey A. Kogoghin explained the situation.

- Sergey Anatolyevich, mass media have been discussing the prospects of the enterprise for a long time. And for some reason the management of the company didn’t hurry to announce to its workers, the public about the forthcoming reforms…

- Believe me, it’s not because we were going to undertake something secretly. Such are the conditions of commercial negotiations.

Our shareholders and the owners of Daimler set the terms and established the order of information disclosure. We fulfilled these conditions. Now we can discuss what’s going on in detail.

Well. Negotiations for purchase of KAMAZ shares by Daimler continue. There is a group of German experts at KAMAZ who are auditing the company to compare the posted price of shares with their real value.

- Why did Daimler, the largest auto maker in the world, show interest in purchasing of a big holding of KAMAZ shares?

- I think, it happened because during the last 5 years KAMAZ has got the best financial and economic performance among auto makers of Europe and the USA. Annually we grow by 25-30 percent. Capitalization has increased from US\$300 million to US\$4 billion. That is more than tenfold.

Potential buyers consider that KAMAZ will go on developing so dynamically. That’s why it’s profitable to invest money in it. When Troika-Dialog Investment Company (one of the main shareholders of KAMAZ Inc.) dispersed information that it was going to realize a part of its holding of KAMAZ shares practically all largest truck makers showed their interest.

I think it indicates a high reputation of the company in the auto business world.

- Why did KAMAZ shareholders choose exactly Daimler concern as a strategic partner?

- First of all, because Daimler won the tender for buying the KAMAZ holding of shares which had been announced by our shareholders. And it was furthered by the fact that Daimler is a technological leader among all probable partners and potential investors. Financial conditions suggested by the German company also proved to be more interesting than other pretenders’ terms.

- Sergey Anatolyevich, to your mind, what profit did both parties find in this partnership?

- Daimler is interested in the Russian market. Partnership with KAMAZ will enable the concern to enter it easier. Our enterprise has fabrication facilities available which can be used for new production. And this is what attracts the German manufacturers.

And we will get new products, advanced technologies in developments, production and management.

It’s not a secret that Mercedes – the affiliated company of the concern – produces one of the most popular and reliable makes of vehicles – cars and trucks. We expect to radically renew our production and technological basis with the help of the attracted investment. And also – to considerably increase the family of produced vehicles.

- The large foreign owner appeared. And it naturally makes the company’s workers worry about possible negative consequences, rather than have optimistic expectations. For example, the headcount of staff can be reduced, the company can reorient to production of foreign models (and KAMAZ will “lose its face”), production volumes and wages can be reduced, etc.

- I believe these apprehensions are groundless. Daimler doesn’t become the sole proprietor of KAMAZ. All decisions of principle will as before be made by the company’s Shareholders Meeting, Board of Directors and Management. It’s natural that the German party pretends to a definite number of seats in Board of Directors and in Management of KAMAZ Inc. it is very likely that several top managers will also represent Daimler. But this is a normal worldwide practice not provoking cataclysm or collapse.

What is more, we expect to considerably strengthen our positions on the market due to competitive recovery of our production and introduction of new technologies. Our business will become more profitable. New models of light trucks and buses will appear on our conveyor. We came to an agreement about it with our partners.

Of course, production volumes and wages will increase. Most probably, we will have to get new labor force involved in production. And in general, the practice of interrelations of German companies with their employees refutes all these “bogeyman stories”.

I consider we will learn from the partners how to perfect production control and solve some social problems.

- Will the appearance of new proprietors affect your personal career as Director General?

– The period of my contract with KAMAZ Board of Directors hasn’t expired yet. Having received designation as Director General in 2002 I announced that I came to the plant in earnest and for a long time. I’m not going to give up the enterprise into which I had put so much effort, experience and knowledge. Apparently, the company’s shareholders also adhere to the same position. As it was one of conditions that I reserve my post as Director General.

However, we will have to live without illusions. One and all will have to do it. The Germans are discipline, order and reliability everywhere and in everything, precision and punctuality. Used to a “freer” life style, we will have to catch up with them.