OREANDA-NEWS. November 19, 2008. To date Sergey Kogoghin, Director General of KAMAZ Inc. met with the company’s middle and top managers and specialists.

Director General gave the managers a detail account of the situation in the world and Russian economy. He noted that it’s not only a financial, but also a systemic economic crisis which is gradually involving all trades not only of the USA and the European Union, but also of all countries focusing on the open market. “Gas prices will be reduced after oil prices, and then the crisis won’t pass other extractive industries”, – said Sergey Kogoghin.

According to Sergey Kogoghin, the financial and economic position of KAMAZ looks more attractive than the position of other Russian and CIS automobile plants. Nevertheless, sharp recession in demand for trucks led to creation of six weeks’ stock of KAMAZ Trade and Finance Company and its dealers in the Russian regions.

– The Russian automobile plants will no longer be able to manufacture for stock, – said Director General, Chairman of NP OAR Board (Non-profit partnership Association of Russian Automakers). – That’s why it can’t be ruled out that all of them would manage to go through the crisis. As to KAMAZ, there are no grounds to forecast such an outcome. And the fact that we have recently obtained a jumbo credit of “City Bank” shows that the largest financial structures of the world trust our company.

Director General also told about the company’s crisis management program lately accepted by KAMAZ Board of Directors. First of all, it presupposes introduction of the regime of tough cost cutting and resources saving in all areas. However KAMAZ doesn’t intend to freeze its innovation projects. According to Director General, the project work will be continued, though corrected according to the situation.

– We expect that the Government of Russia, regional authorities and local administrations will support our efforts and measures we take to help KAMAZ out of the crisis, – said Sergey Kogoghin.

In particular, KAMAZ Director General and Chairman of NP OAR Board suggested closing the domestic market temporarily protecting it against imported automobile equipment of foreign manufacture, and also – furnishing the Russian enterprises of automotive industry with a financial assistance. According to him, it’s also necessary to organize tenders for vehicle purchase to government orders where preference should be given to the Russian producers.

Addressing the managers and specialists of KAMAZ, he said that at this conjuncture they should pay attention to the issues of guaranteed high output quality.

– If earlier, with rush demand for our production, we could maneuver between prices and quality depending on customers’ requests, – he said, – now the issues of quality are definitely in the first place. Such a situation will not change after the crisis. 

Director General named maintenance of the professional staff and welfare one of the main priorities in this situation. In particular, he assured that the wage will be paid out at a stated time.

KAMAZ people and, first of all, those of them who went through the crisis ten years ago share Director General’s firm belief that the staff of the auto giant will go through this crisis as well having kept the enterprise, personnel and development potential.