OREANDA-NEWS. October 13, 2008. The crisis which struck the economy and finances of the whole world reached the enterprises of the Russian automotive industry too. How profound will be its impact on the economic and social policy of KAMAZ? Sergey Kogoghin, Director General of KAMAZ Inc., answered this question.

The universal crisis gives a small chance of prosperity. We havent felt it long enough. But we understood that it would touch us in any event and prepared for it. That is we tried to stabilize the company, create all favourable conditions for its development (and managed to do it).

But we couldnt foresee how acute the liquidity crisis, the deficit of financial resources and the crisis of confidence in the banking system would be.

It must be admitted that the crisis came to KAMAZ. Its hard to predict how long it will last. But there is no expecting that the situation will change for the better soon. There is serious business contraction in the country. Of course, we are especially worried about this fading in such industries where the core customers of our production are concentrated. The interdependence is clear and simple here. If they dont work they dont need our vehicles. We are the first to suffer from a weak pulse of economic life. Though the federal government does everything possible and promptly makes decisions the situation is destabilized.

We had to work even at much worse times. But the company survived. And it got stronger little by little but confidently. We gained strength enough not to fall again. But now we will have to considerably limit optional costs, especially in a non-production sphere.

What are the main measures of the crisis management program developed and implemented by the company?

They apply to all KAMAZ subdivisions and organizations and, undoubtedly, they are not limited only to the search of new markets and partners. They also include metal, material and component purchase cost minimization. Generally, we need to optimize our expenses. We will have to reduce monthly automobile production volumes by 1 thousand to 4200-4300 vehicles. Therefore, most likely, we will have to use a flexible and, at the same time, tough manpower policy.

We approached to almost the main question which disturbs the companys workers will there be staff reductions?

We cant do without personnel redundancy. The changes will concern the routine of work as well. However, no collective dismissal is planned. We will optimize the qualified personnel. The company management will take care of each employee who contributes to improvement and development of the enterprise, provide him or her with work enabling to realize his or her potential and get corresponding wages.

Will the crisis management measures concern social programs?

No, they wont. There is no need in this so far. We will comply with the provisions of the collective agreement currently in force. True, we wont be able to increase the volumes of the social package in the short run. We will have to live within our means.

Mr. Kogoghin, you are an experienced crisis manager, such situations are not new to you. Can one compare todays situation with that one in 2002 when you came to KAMAZ?

Todays situation is far milder. Six years ago the enterprise was practically bankrupt. To date our production process is smoothly running. There is a developed and extensive dealer network; other production distribution channels are developed too. Highly skilled employees work at the enterprise.

Naturally, the task is defined differently: firstly, our aim is not to allow the companys financial crisis and, secondly, to come out of the recession the country is suffering from and become stronger: not to lose our market share. And whats more to strengthen our market position.

During the last two years we production workers, salespeople and managers must have somewhat relaxed. Nearly for half a year customers queued on our production. We hadnt seen such dolce vita for ages. We will have to search clients, improve the quality of products and perfect our service. Im sure we havent forgotten how to do it.

KAMAZ can get over the difficulties. Undoubtedly, it will stand fast this time as well. The crisis is of benefit only to strong people: they come out of it hardier. And we are strong.

Monday, 13 October 2008
Best Tractors for Russian Agrarians

KAMAZ Trade and Finance Company shipped for customers the first batch of KAMAZ T-215 farm wheeled tractors assembled at the enterprise which was created this summer jointly with the world producer ARGO Tractors S.p.A. (Italy).

New KAMAZ tractors will be leased for agrarians of the Tambov, Ulyanovsk, Irkutsk regions, the Stavropol Territory and other Russian regions. OAO Rosagroleasing public company the committee of directors of which is headed by Aleksey Gordeyev, the RF Minister of Agriculture, is a direct customer of KAMAZ and, correspondingly, a lessor for customers.

39 out of 43 tractors made on the basis of kits from Italy and France are already shipped for customers. The assembly is conducted on the stocks in the delivery building of the automobile plant. The assembly enterprise plans to ship 200 tractors for customers till the end of the year. The enterprise is preparing its own working areas which will be located in the building of OOO KAMAZ-montazh. At the same time the assembly of a less powerful model KAMAZ T-85 is being mastered.

KAMAZ tractors are unique and have no analogues in Russia. Each of them can substitute for a tractor fleet of several types of vehicles alone. They have the highest performance level in their class and low fuel consumption. Thanks to a climate system, its cool in the tractor in fervent summer, and its warm in winter. KAMAZ T tractors will set new standards of working conditions in Russia and improve quality standards of farming machines.