RUSSIA: GAZ Group could export parts to GM: Andersson
GAZ Group says it could export some parts back to General Motors as overseas automakers increasingly put their trust in the Nizhny Novgorod manufacturer.
Speaking at the launch of Chevrolet's Aveo production at GAZ Group's Nizhny Novgorod plant in Russia, CEO, Bo Andersson, raised the export possibility and the potential to add further capacity if needed.
The Aveo is being assembled on two shifts, with a hatchback version to be added to the GAZ production line at the end of next month. Planned annual output of both versions is 30,000 cars.
"With General Motors, we have an eight-year contract - we must earn that trust," said Andersson. "If we do that, I am sure GM will give us another vehicle - today we could add 15,000 units if we go to a third shift.
"We will [also] fulfil 30% of localisation as a first step and if everything goes right, we will get to 50%. But it is always a trade off between cost and benefits.
"With high volume and high investment parts, we will not be competitive, but on a lot of other parts, we will save a lot on logistics. In some areas, we could also export back to GM."
GAZ Group - part of Russian Machines and Basic Element - ended its its own passenger car production to concentrate on commercial vehicle manufacture, as well as contract building of models for General Motors, Volkswagen, Skoda and Mercedes Benz.
"Most people felt it was the wrong decision to step out of passenger cars," said Andersson. "I showed [Oleg] Deripaska [Russian Machines owner, Basic Element chairman] 20 years of decline.
"It was not an easy decision, but it was necessary. My short-term thinking was if you don't do something, you will just die."
GAZ is Russia's largest manufacturer of commercial vehicles, with 13 plants, producing around 50% of LCVs, 58% of medium-duty trucks and 65% of buses.
It also produces cars for Skoda - Yeti and Octavia - Volkswagen - Jetta - Chevrolet - Aveo and Mercedes Benz - Sprinter.
The battle over air conditioning refrigerant between Mercedes-Benz and France (more or less repping the EU) continued this week with neither side showing signs of backing down....
This QUBE report from just-auto provides a comprehensive overview of the global transmissions sector, major suppliers, top markets, technology trends and market size forecasts. Use this report to gain...
An internal investigation into General Motors India's controversial Chevrolet Tavera multi-utility vehicle (MUV) recall has led to an additional 30-35 key executives at their Indian operations being a...
General Motors has increased to US$350m planned spending for new vehicles to be produced at its Spring Hill assembly plant in Tennessee, home to the defunct Saturn brand from 1990 to 2007....
Don Butler, the head of global strategy for Cadillac has resigned just four months after being appointed to help to boost the brand's international sales....
Isuzu Motors will source diesel engines for its new Indian-made pickup trucks from General Motors in order to cut development costs....
- ANALYSIS: Depressed Thai market forces rethink
- ANALYSIS: VW Group - success and succession
- THE WEEK THAT WAS: Chinese scoop up Pirelli
- Q&A with Victrex
- ANALYSIS: UK supplier industry perks up
- Jaguar unveils second generation XF in London
- Jaguar Land Rover announces Whitley R&D expansion
- New York show debuts: Scion iA added
- Tata's Jaguar Land Rover announces GBP 600m spend
- CLEPA pays tribute to auto air crash victims