Leasing Is A Way Out

The other day Leasing Department of KAMAZ Inc. celebrated its 3d birthday. Since December 2002 5 792 vehicles of KAMAZ origin have been passed for leasing valued 6 650 billion rubles. In 2005 (according to live data) there has been made 317 contracts on passing for lease 2 648 vehicles amounted 3 442 billion rubles.

In fall of 2005 KAMAZ Leasing Company (KAMAZ Inc. owns 51% of shares and “Center-Capital” Company - 49%) Alfiya Garifullina, KAMAZ Inc.’ sales and leasing development Director headed a subsidiary leasing company. It was she who in 2002 established Leasing Department of the Company and was engaged in promotion of “directly from the manufacturer” leasing scheme on the market. This payment scheme has become very popular all over Russia. Establishment of a leasing company accomplished the forming of KAMAZ Inc.’ division for sales and leasing development necessary for realization of a new conception of product promotion.

As per rating of “The Expert” magazine Leasing Department of KAMAZ Inc. was on the 13th position among 100 leasing companies of Russia (in 2004 it was 15th in TOR-100 “The Expert”) and on the first position among specialized vehicle leasing companies.

Now Leasing and Sales Department focus on the development of new finance products and their standardization with the further introduction into the market. Among the latest sales instruments A. Garifullina mentions efficient, designed and full operational leasing scheme and trade-in. Vehicles of KAMAZ group of companies one can obtain on any terms. A standard offer includes 4 years of leasing deadline (for dump trucks, farming vehicles and superstructures is 3 years); prepayment is up to 30%. Standard package cost of leasing services is from 9% per year including property depreciation and interest on credit, property insurance during the whole leasing period “Avtokasko”, OSAGO for a year, all taxes (exemption), vehicle registration in the State Road Police. All time constraints are fixed: in a day a leasing offer is introduced, in a week evaluation of financing circumstances is finished, the contract and shipping are made within a month. A sum of a contract is not limited.

To the major clients belong “Bashavtotrans”, Siberian Coal Energy Company (SUEC), “Mosavtotrans”, “Lenpasstrans” and others.

Division for sales and leasing development of KAMAZ Inc. functions in full compliance with a new KAMAZ strategy. According to this strategy the manufacturer not only produces and markets its vehicles but also offers a complex of services for purchasing, warranty, after-sales service, substitution of new vehicles for old ones. In other words KAMAZ Inc. sells not simply “iron” but “a solution of a customer’s problems.

Wednesday, 28 December 2005

Board of Directors of KAMAZ Inc. Approved Business Plan for 2006

On 21 December, 2005 in Moscow Board of Directors of KAMAZ Inc. approved the Company’s business plan. In 2006 KAMAZ Inc. plans to realize 34 000 trucks (vs. 32 200 in 2005), 25 500 out of which is planned to sell in Russia, 8 500 to be exported. There will be assembled 1 320 passenger buses (vs. 1 135 units in 2005).

It is planned to output and realize products valued 45,4 billion rubles (vs. 44,4 billion rubles in 2005) including KAMAZ trucks valued 31,7 billion and spare parts valued 8 billion rubles. Realization of products of diversification will increase up to 5,6 billion rubles. 2 700 units will be passed for leasing.

Income from realization of products and services by the end of 2006 will constitute 48,4 billion rubles.

According to the business plan for 2006 it is forecasted to make 50,8 billion rubles worth income (vs. 114% by expected result in 2005). Next year net profit should total 500 million rubles (vs. expected 306 million in 2005).

Basic financial paper of KAMAZ Inc. for 2006 functioning up to 2010 corresponds to the adopted development Strategy of the Company.

Thursday, 22 December 2005

KAMAZ Trucks For Airborne Forces

In few days under Ryazan city (Ryazan oblast’, Russia) specialists of airborne forces will carry out a test of the advanced models of armament and troop equipment. The best ones are intended for Russian airborne forces.

“There will be 5 KAMAZ models”, said Alexander Kolmakov, Russian airborne and defense forces’ commander in Chief. He visited Naberezhnye Chelny together with airborne forces delegation, and attended the plant and test ground of the Company. The guests were demonstrated KAMAZ-43501, 4350, 63501, 43114 and 4911-Extreme in operation. The colonel Kolmakov was informed about successful tests of new KAMAZ-43501 landing truck.

The management of airborne forces shows interest not only to the new landing vehicle. As Danis Valeev, chief designer of KAMAZ Inc., said, sky army is in need of vehicle with the highest level of unification for various divisions. “That will allow airborne troops to use less spare parts and its nomenclature. We have already estimated the needs of airborne troops and found no application sphere for KAMAZ trucks where they could not but be operated”, Danis Valeev said.

Sergey Kogoghin, Director General of KAMAZ Inc. regards these successful tests as “the beginning of cooperation with airborne forces”. One of the main customers of the Company is the Major Armored Vehicle Body of Russian Defense Ministry. And according to Director General of KAMAZ Inc., successful end of the tests at Ryazan ground will contribute to significant extension of military orders.

Wednesday, 14 December 2005

Results of November and 11 Months of 2005

In November 2005 the group of companies of KAMAZ Inc. has delivered to its customers products valued 4 720 billion rubles (including corporate output of “NefAZ” Inc. and “KAMAZ-Avtopritsep” Inc., Stavropol), thus accomplishing 102% of the business plan. There were marketed 3 037 trucks (101%), 772 of which were exported; 3 477 engines (100%); spare parts have earned the Company 624 million rubles (100,4%).

Since the beginning of the year KAMAZ Inc. marketed 38 706 billion rubles’ worth products (101 %). This is by 10,8% higher vs. the same period of 2004. Besides due to services provided to customers the Company made 1 736 billion rubles.

There were marketed 29 453 trucks (102,7%, by 13,1% higher vs. 2004), including 7 890 units for export, 36 358 engines and power units (100,7%, by 7,8% higher vs. 2004), trucks’ spare parts valued 6 178 billion rubles (101,1%, by 0,2% higher vs. 2004). The Company shipped 1 025 trucks, 8 630 trailers, what is by 482 units more vs. 11 months of 2004.

Tuesday, 13 December 2005

Engine Birthday at KAMAZ Inc.

On 8 December KAMAZ celebrated the 30th birthday of the first engine assembly. Number of engines manufactured by the beginning of a working day constituted 2 375 993 units. That’s how much units has been produced within 30 years at the main assembly line.

History of KAMAZ engine started in 1971 in Yaroslavl. The engineers were set a task to develop the lightest and the most economical engine for a vehicle with the best technical and operating characteristics. At the same time there was projected KAMAZ engine plant itself - “KAMAZ-Diesel”. Currently it is one of the largest Russian engine producing enterprises for heavy-duty trucks with over 7 000 employees.

Within last 10 years all model range of KAMAZ engines has undergone radical changes. In 1997 740.11.240 engine model was certified as Euro-1. Since January 2001 “KAMAZ-Diesel” was the first plant in Russia to proceed to the serial production of Euro-1 engine and the next year to Euro-2. KAMAZ for the first time in Russia certified diesel of Euro-3 engine class. Assembly preparation of certified gas and diesel engines of Euro-3 standard has almost come to its end.

Today “KAMAZ-Diesel” offers its customers engines of over 90 modifications including bus, farming, ship, energy-power installation engines. In February 2004 there was certified Quality Management System that allowed to increase engine quality level, master new products and extend production volumes. This year when the plant celebrates its 30 anniversary there was reached the highest production volume since the assembly start: till the end of 2005 it is supposed to be launched about 37 000 engines.

Friday, 09 December 2005

KAMAZ - Reliable and Cost-effective

A new “ZF Kama” joint venture on premises of former «Turbodiesel» founds its base on the engine plant. Here soon will be launched major parts and components machining for assembly of gearboxes at “ZF Kama”.

Next year all shafts, gear wheels and crankcase parts will be delivered from here. Due to this the prime cost of a gearbox and of a truck accordingly will fall. New high-tech production will become a model for mechanical engineers.

Wednesday, 07 December 2005

Investment into KAMAZ-Engineering Is Continuing

“KAMAZ Inc. invests 3,5 million USD in the Russian-Kazakhstan Assembly Enterprise “KAMAZ-Engineering”, informed Sergey Kogoghin, Director General of KAMAZ Inc. “We hold 5 million USD of floating assets in “KAMAZ-Engineering”. It is a goods credit without interest. Next year total investments volume will constitute 3,5 million USD”, he added.

The other day at Kokshetau enterprise established in August 2005 there was assembled the 100th KAMAZ-55111 truck. By 1st November “KAMAZ-Engineering” has earned 3,6 million USD worth products. Apart from KAMAZ trucks there were also assembled 30 NEFAZ-5299 buses. It is planned to produce there 2 350 KAMAZ and NEFAZ vehicles every year: 1 500 dump trucks, 650 dumping trailers and 200 intercity buses.

Kazakhstan Republic has a large fleet of KAMAZ trucks and there is a constant growing demand on them – about 65 000 KAMAZ trucks are operated there, that is 70% of all country truck fleet. “Organization of KAMAZ trucks production in Kazakhstan is quite sound economical intention of both KAMAZ Inc. and Kazakhstan Government”, Sergey Kogoghin said. He also mentioned that KAMAZ trucks and buses assembled in Kazakhstan equals in quality to those produced in Naberezhnye Chelny.

Thursday, 01 December 2005