News

KISM is Certified

OAO KAMAZinstrumentspetsmash successfully certified its ecology and labour protection activity.

The other day Russian Register Association – the certification auditor of the enterprise – has given OAO KISM two certificates. The first one – of compliance with standards of ISO 14001 by version of 2004 of environmental protection – is granted for three years. The second certificate – of compliance with standards of OHSAS 18001 by version of 1999 of high security and workers’ health protection – should be annually proved.

Obtaining of these documents makes KISM go on working strenuously in these directions: to take measures for preventing traumas, protect the workers’ health and meet the environmental requirements.

OAO KISM is a subsidiary production unit of KAMAZ Inc. which specializes in production of tools, accessories, spare parts for the company’s plants and also automobile special equipment.

Friday, 22 August 2008

KAMAZ: Worthy Equipment is Matter of Honour

KAMAZ introduces its equipment at III International Defence Exhibition of Land Forces “IDELF – 2008” which opened in Moscow on 20 August.

More than 400 Russian and foreign companies from 23 states gathered at the exhibition organized by the experts of the RF Federal Defence and Technical Cooperation Service.

At this show KAMAZ Inc. demonstrates models of defence equipment which have proved to be good during their operation by the units of the Armed Forces of the Russian Federation.

For example, a side vehicle KAMAZ-53503 with a wheel arrangement 6x4, one of the first non-all-wheel drive multipurpose vehicles of “Mustang” family with a renewed power unit, which made its debut with success last year. A range of design solutions aimed at improvement of customer properties are realized in it.

Also a multipurpose vehicle KAMAZ-53501 with supplementary armoring of a cab and a compartment for personnel is presented to the audience. Developed on the basis of a “Mustang” KAMAZ-5350, the “Five-O-One” has a longer base than its predecessor (3690 mm against 3340 mm) and also considerable payload (up to 10 t). That’s why the new “Mustang” fully grants the demands of the AF of the RF to the vehicle intended for installation of modernized and new armament. And what is more a platform with fitting attachments for transportation of containers is easily mounted on it.

A vehicle KAMAZ-6350 (8x8) – the most powerful vehicle of “Mustang” family presented at the exhibition – is very famous. At the exhibition it is represented by an artillery tractor with an armored cab and a crew compartment and intended for a team of 8 people. KAMAZ-6350 (8x8) is meant for hauling of artillery pieces 2A36, 2A65 and also for positioning and transportation of special cargo (ammunition). It can be used on all kinds of roads and countries with the temperature from -50Ñ to +50Ñ including regions located at the height of up to 4000 m over the sea level, passing up to 4655 m.

The attendees of the show can acquaint themselves with one of the most powerful vehicles of “Mustang” family – KAMAZ-6560 (8x8) with a hydraulic manipulator. Equipped with an engine of 400 h. p. it is able to transport cargo up to 19 tonnes towing a 12 t trailer at the same time. Moreover, the vehicle can make up to 90 km/h and pass fords up to 1.75 meters deep.

Friday, 22 August 2008

KAMAZ Board of Directors Made Important Decisions

The meeting of KAMAZ Board of Directors which took place on 14 August 2008 discussed all issues on the agenda and made decisions.

The representatives of the owners of KAMAZ Inc. took into account information about implementation of the business plan of KAMAZ organizations for 5 months and tentative results of the first half year of 2008. Director General Sergey Kogoghin made a report about negotiations with Daimler AG (Germany) as a potential strategic partner of KAMAZ Inc.

Committee of KAMAZ Board of Directors on Audit was formed of three incumbent members of KAMAZ Board of Directors. It includes Freelance Consultant Terrence O’Rourke, CEO of ZAO “Financial Broker “Troika-Dialog” Sergey Skvortsov, Mayor of Naberezhnye Chelny Ildar Khalikov. Ildar Khalikov is elected Committee Chairman.

Committee of KAMAZ Board of Directors on Personnel and Compensation was also formed of three people. It includes Deputy Director General of State Corporation “Rostekhnologii” Igor Zavyalov, Chairman of KAMAZ Trade Union Committee Gumer Nuretdinov, Freelance Consultant Ronald Freeman. Igor Zavyalov became Committee Chairman.

Board of Directors approved the plan of its work for the period from August 2008 to July 2009.

With a view to realization of the item of the RF President’s Decree from 4 June 2008 ¹ 889 “About some measures for increase of energy and ecological efficiency of the Russian economy” it is recommended that Director General of KAMAZ Inc. should develop energy conservation program of KAMAZ Inc. and submit it to KAMAZ Board of Directors and Federal Agency of State Property Management by 15 October 2008 and also bring the respective issue up for discussion at the next meeting of KAMAZ Board of Directors.

KAMAZ Board of Directors also made decisions on some issues concerning the company’s activity.

Thursday, 21 August 2008

Will “Africa Race” Replace “Dakar”?

Semyon Yakubov made the sensational news public during the press conference which took place on 15 August. In addition to the traditional “Dakar-2009” which will non-traditionally be held in South America KAMAZ-master team will participate in another rally-marathon – “Africa Race”.

The new race the initiator and organizer of which is the former director of “Dakar” Hubert Auriol will take place on the same days and on the same routes on which the official “Dakar” had been held. Even if the organizers of “Dakar” want to come back to the African continent they will be able to do it only in the event if Hubert Auriol refuses to hold “Africa Race” rally. And it will hardly happen – nature abhors a vacuum.

This news was a bombshell for T-4 class racers (trucks), according to Semyon Yakubov. Hubert Auriol – an old friend of KAMAZ-master team – personally invited it to participate in the new rally-raid. Besides our racers, Jan and Gerard De Rooy decided to participate in both races. Over the phone Gerard informed Semyon Yakubov that he would go to South America and his father would participate in “Africa Race”. One can expect that the representatives of “MAN” team and other racers will make the same decision.

Three KAMAZ crews will go to “Dakar” in South America: Vladimir Chaguin, Sergey Savostin, Eduard Nikolayev; Firdaus Kabirov, Aydar Belyayev, Andrey Mokeyev; Ilghizar Mardeyev, Vyacheslav Mizyukayev and Andery Karghinov.

Two new crews will prepare for “Africa Race”.

The main problem of simultaneous participation in two long races at once lies in financing, according to the leader of the team. That’s why the team is now actively looking for sponsors ready to support the Russian sportsmen. The more so because “Africa Race” can become more prestigious than the traditional “Dakar” which moved to the distant America.

There are four months before “Africa Race” and Dakar-2009. In the meantime KAMAZ-master team will participate in “Desert Challenge” rally (UAE) and the successive stage of the Russian Championship – “Tikhy Don” rally.

Wednesday, 20 August 2008

“Tikhy Don” will Test Durability of Axles

From 29 to 31 August the successive stage of the Russian Championship – “Tikhy Don-2008” rally raid – will be held on the territory of the Rostov region.

KAMAZ-master traditionally participates in this event. According to the leader of the team Semyon Yakubov, the objective of their participation in “Tikhy Don” rally is crew training, practicing of their cooperation and also testing of automotive equipment including new components of a sport car.

This year five crews go to “Tikhy Don”. Three of them represent KAMAZ-master team: Vladimir Chaguin, Sergey Savostin, Eduard Nikolayev; Andrey Karghinov, Robert Amatych, Igor Devyatkin; Ayrat Mardeyev, Vyacheslav Mizyukayev and Evgeny Ivanov. Semyon Yalubov named another two crews “client” ones so long as vehicles individual persons bought from KAMAZ prepared for the race in the automobile service center of the team. They include inhabitants of Naberezhnye Chelny Bulat Yanborisov, Aydar Belyayev, Anatoly Tanin and Muscovites Sergey Stovbun, Aleksandr Zhukov, Andrey Chernyshov. Besides, the participants will be accompanied by three vehicles including an emergency car.

“We try diverse decisions on all five racing cars – parts and assemblies which we would like to test, – said Semyon Yakubov. – They will be used at “Dakar” rally or not depending on the results of tests in “field” conditions. In other words, the whole work of the team now is aimed at preparation exactly for “Dakar”.

“Tikhy Don” is a short race. Its total extent is 500 km. It is divided into four special areas of 150 kilometers. They will enable the team to test all those new things the racers are going to use at “Dakar”. Special attention will be given to new axles, brakes, the work of fuel equipment and also the whole suspension which has been tested several times. If they pass the tests to satisfaction at “Tikhy Don” the axles will be installed on “Dakar” vehicles that will make it possible to lower the weight of a vehicle by 500 kilograms. In its turn, this will cut by half the difference in weight between a racing KAMAZ and the vehicles of our team’s main competitors.

Vladimir Chaguin’s crew will bear the basic load in the forthcoming “Tikhy Don” rally-raid. He will go to the Rostov region not to gain a victory. As Yakubov told, Chaguin will drive exactly that vehicle which was prepared for “Dakar”. His task is to “load” the vehicle as much as possible to reveal all possible breakages.

“That’s why this race won’t be smooth for him, he will have to stop, check the work of blocks and aggregates, take the temperature, repair. If Chaguin runs safely, without break-downs and other problems we will consider that this version of a vehicle is prepared for the coming “Dakar”, – concluded Semyon Yakubov.

Wednesday, 20 August 2008

Daimler — Partner for Growth

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 $300 million to $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.

Tuesday, 19 August 2008

New General in Dealer Network

Andrey Korzhevin, one of the largest KAMAZ dealers, is appointed Director General of KAMAZ Naberezhnye Chelny automobile service center.

Korzhevin succeeded the former director Aleksandr Babayev who had gone into retirement.

Andrey S. Korzhevin was born in 1968. He has got a higher technical education. He has wide-ranging experience in different business corporations of Moscow, in the sphere of sales and leasing. Since June 2005 his labor activity has been connected with KAMAZ. Before he was appointed Director General of KAMAZ Naberezhnye Chelny automobile service center Andrey Korzhevin had worked as Deputy Director of Leasing and Sales Development of KAMAZ Inc.

Monday, 18 August 2008

KAMAZ – ZF: Head for Northwest!

On 11 August an auto race of KAMAZ trucks equipped with Zahnrad Fabrik gearboxes started in Saint-Petersburg.

Auto races with participation of the Russian automobile plant and the German world-class manufacturer have been held since 2006, when their joint enterprise of gearboxes production began to work in Naberezhnye Chelny.

The route of the current race goes through such regional centers of Russia as Yaroslavl, Vologda, Krasnogorsk, Kursk, Voronezh, Saratov, Volgograd, Rostov-na-Donu. The race will be finished on 9 September in the capital of Kuban – Krasnodar. In total the participants of the race will get over 3500 kilometers.

The major task of the auto race is, as before, tracing the operating efficiency of KAMAZ trucks with ZF gearboxes, including information gathering from dealers and, of course, from customers. Presentations of ZF production, demonstration of video films devoted to KAMAZ Inc. and Zahnrad Fabrik will be held in large cities. The employees of Trade and Finance company and KAMAZ Leasing Company will make their reports devoted to improvement of sales and service policy. The designers of KAMAZ R&D Center will speak about new and promising models of KAMAZ trucks. In addition, KAMAZ vehicles with ZF gearboxes will be tested in each city where presentations will be held.

The choice of Saint-Petersburg as a starting point of an auto race is natural and justified. It is the northern and cultural capital of Russia, the country’s main sea gates to Europe and the most important economic citadel of the Russian Northwest. During the years of economic reforms exactly Saint-Petersburg and the Leningrad region became that very “touchstone” on which competence of all players in the Russian automobile market – the most spacious one on the continent – is proved. The representation of automobile companies and their competition here is the highest in Russia.

All this to a large extent defined the composition of the auto caravan of KAMAZ and ZF.

This is a combination on the basis of a biaxial long-haul truck tractor KAMAZ-5460 with a ZF semitrailer-van. The “hauler” of 40 t GVW and maximum safe load on the fifth wheel of 10.5 t is a basic model of its family. In the process of fundamental modernization it absorbed the whole modern experience of KAMAZ in creation of modern equipment.

Another participant of the auto race is a side vehicle KAMAZ-4308. Like the long-haul truck tractor, it became one of the major users of the auto components produced at the joint enterprises of KAMAZ with the leading world-class producers. “Europeanization” and a gradual extension of the family made the KAMAZ medium tonnage truck one of the basic and called-for brands in the Russian market. Its chassis of 6 t carrying capacity serves as a basis for many kinds of special automobile equipment.

For the first time at the auto races KAMAZ-ZF a city bus NEFAZ-5299-20-23 on the basis of special KAMAZ chassis will become the representative of its large family which includes suburban, intercity, sightseeing and “north” models – low entry buses with diesel and gas engines. The bus is equipped with a low-consumption and reliable engine KAMAZ-740.31-240 of an ecological class Euro-3 that is especially important for large cities. NEFAZ-5299-20-23 has a low entry, accommodates over 100 people and is designed for warranty kilometrage of up to 100 thousand km or 18 months of running.

Monday, 18 August 2008

Plenipotentiary of RF President Visited KAMAZ

On 7 August Grigory Rapota – Plenipotentiary Representative of President of the RF in Privolzhsky Region – visited KAMAZ.

Accompanied by Farid Mukhametshin, Chairman of the RT State Council, he arrived in Naberezhnye Chelny. Sergey Kogoghin, Director General of KAMAZ Inc., and Ildar Khalikov, Mayor of the city, welcomed the distinguished guests.

Grigory Rapota and Farid Mukhametshin visited the mother assembly conveyor of the KAMAZ Automobile Plant. Then they saw an exhibition of automotive engineering in the KAMAZ R&D Center and visited the Center of Auto Racing of the KAMAZ-master team. Plenipotentiary went for a ride in the racing vehicle of the team which is piloted by Firdaus Kabirov – the hero of many “Dakars”.

Negotiations for strategic development of KAMAZ Inc. and Naberezhnye Chelny were carried on during the visit.

Friday, 08 August 2008

More and Better

For seven months of 2008 the enterprises of KAMAZ Group produced and realized by 4 thousand trucks and 7 thousand engines and power units more than for the same period of 2007.

The enterprises of KAMAZ Group shipped for their customers marketable products for RUB 56 billion 584 million (+10.35% to January-July of 2007 in comparable prices).

There were produced and realized:
– 32798 trucks (+14.0% or +4039 units);
– 41969 engines and power units (+20.45% or +7126 units);
– spare parts for the sum of RUB 6 billion 694 million (+3.7%);
– diversification products for RUB 5 billion 815 million (–1.7%).

In addition, there were rendered services for RUB 3 billion 291 million.

There were realized 24545 trucks via the dealer network and direct deliveries on the home market (+17.7% to January-July 2007). Foreign customers received 8253 vehicles (+14.3%). There were overhauled and modernized 979 KAMAZ vehicles. There were produced and shipped 1980 assembly sets for foreign assembly enterprises.

For seven months there were leased or shipped with payment by installments 2873 units of major production – trucks, buses and trailer equipment. This is by 35.6% (755 units) more than for the same period of 2007. KAMAZ Group leased 609 NEFAZ buses on KAMAZ special chassis.

Wednesday, 06 August 2008