OREANDA-NEWS. March 11, 2010. Sergey Kogoghin, Director General of KAMAZ Inc. held a press conference devoted to the results of 2009, prospects of work in 2010 and the company’s strategic plans for the next years.

– We solved the main task confronting us, we secured the survival rate of KAMAZ, – said Director General. – KAMAZ may be the only company with satisfactory performance in the Russian automobile industry.

The impact of the crisis hadn’t been easing during the whole year, and KAMAZ, like the rest of producers, didn’t manage to avoid certain losses. But their extent isn’t comparable with many other automobile plants’ loss volumes, because KAMAZ focused on a cut in its expenditure and a growth of a sales share on the market, and began implementing its crisis management measures in good time – before other Russian automobile plants. According to Mr. Kogoghin, it was a circumstance that gave rise to Daimler’s decision to purchase 10% of KAMAZ shares and to conclude a strategic partnership agreement. Dr. Dieter Zetsche, Chairman of the Board of Management (Daimler AG) also told about it at one time.

All key measures of KAMAZ’s crisis-management program adopted in October 2008 are fulfilled. Since then the overall cost reduction has made 10.5 billion roubles. The company’s share on the market grew from 28% to 56.5%. KAMAZ Production System continued developing, and already now it helps to save costs. Labour productivity increased very much, by 20%.

Recounting the key measures of the company’s strategic development program for 2010-2013, Sergey Kogoghin noted that it’s planned to produce and sell 46.1 thousand KAMAZ trucks in 2013, and, ideally, up to 66.5 thousand units. According to Director General, the company is ready for the both versions of Russia’s economic development when going out of the crisis.

– This is a strategy of survival for the sake of the further growth, – said Mr. Kogoghin. – We have got a product for the most capacious segments of the market, we know how to work for export, and we are gradually making progress on those markets where we have never been present before. From our point of view, KAMAZ will go out of the crisis not only financially stronger, but also with a new truck model line. And the company makes everything required to achieve this aim. Even in 2009 – the year which was very difficult for us – we invested 3.7 billion roubles of our own money into development of the company and the basic product. If we hadn’t done it, we would have limited our chances for the further development and would have incurred losses.

Director General expects the further increase in competitiveness on the market. Under these conditions the company won’t strive for the growth of production volumes by all means, but it will focus on production of up-to-date, innovative products of higher quality with account taken of customers’ requirements.

Answering the journalists’ questions, Sergey Kogoghin told about the course of development of a new cab for KAMAZ vehicles.

– I think the general public will see it already at the end of 2010, – said Mr. Kogoghin. – The first vehicles with new cabs will be made in June, and then we will start testing them. We held the first crash-tests of a new cab. The result was beyond our expectations. The cab is comfortable for a driver, meets other safety requirements.

The new vehicles with such cabs, environmentally friendly engines, gearboxes, axles and other modern components will be introduced on the market within the bounds of implementation of corresponding technical regulations in Russia, by an increased overall demand for trucks and a higher purchasing capacity.

Director General of KAMAZ confirmed his opinion of environmentally friendly motor transport which he had passed during parliament hearings in the RF State Duma.

– I’m sure that one of auto manufacturers’ main obligations is to produce environmentally friendly and safe vehicles, – he said.

Sergey Kogoghin emphasized that this was especially important for big cities with their never-ceasing traffic jams on roads. As is known, when a vehicle stays long with a working engine, fuel doesn’t burn completely, and the bulk of hazardous substances is exhausted.

Highly appreciating the fact that Naberezhnye Chelny was included into the list of mono-cities which will be supported by the Russian government in 2010, KAMAZ’s top manager said:

– The city’s economy is based on machine building, the main enterprise is KAMAZ. We influence on the whole city. KAMAZ has always been involved in the city’s problem-solving. All that we do according to the diversification program enables to successfully soften the social blow in our city. For example, in 2009 we established four joint ventures where hundreds of our citizens are now working.

Sergey Kogoghin also noted that another project of diversification of the city’s economy – Kama Industrial Park “Master” – continued developing. Half of the authorized capital of KIP is KAMAZ’s share. Nevertheless, KAMAZ doesn’t derive an economic gain from KIP’s activity. This is a recreation area for medium- and small-scale business in its pure form with a good level of an added value and the soucrce of workplaces for the citizens. KIP “Master” has restored production volumes, increased rented areas and the number of business owners’ objects. 1500 workers are employed there; output of products per one worker makes 3.5 billion roubles a year.

Concerning KAMAZ’s work in the nearest future, Kogoghin said that the company will continue struggling for orders and try to work five days a week. In the second halfyear of 2010 activity on the Russian market is expected to begin. Measures of government support are built into the federal budget.

In conclusion Director General of KAMAZ said:

– I consider that KAMAZ gained additional authority, became more influencial in the world in 2009. To date we’ve got a clear picture of the future.