New AvtoVAZ CEO, Bo Andersson, cites the re-emergence of iconic Russian brands as an example of how companies can be turned around, adding he joined the giant automaker after five years at the helm of fellow Russian manufacturer, GAZ Group, for “pure image.”
Andersson’s surprise move to the top job at AvtoVAZ comes at a time of increasing tension between Russia and the West surrounding Moscow’s involvement in Crimea, but the Swede is looking to implement many of his work practices from GAZ in Togliatti.
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“I did not apply for the [AvtoVAZ] job,” Andersson told just-auto on the sidelines of today’s Russian Automotive Forum (RAF) organised by Adam Smith Conferences in Moscow. “I had a very good time at GAZ and Mr [Oleg] Deripaska [owner] took very good care of me.
“I decided to join AvtoVAZ for one reason – pure image. This was a company that has been suffering for a long time [and] I always look for a challenge.
“I committed to Deripaska and [Russian Machines chairman] Siegfried Wolf, I would do everything to finish off 2013 in a successful way, everyone understood I only had one job.”
Despite a difficult year in 2013 for the Russian car market, AvtoVAZ still remains the largest manufacturer of vehicles in Russia and is leveraging the Renault-Nissan alliance to build business through its world-famous Lada brand to give it an overall 17.4% market share in the country.
With Lada enjoying a 20% market share in Russia, Andersson also cited the rebirth of other domestic brands that have enjoyed considerable impact such as Gazprom, Aeroflot and Sperbank as role models of business success.
“I used to fly Aeroflot in the 1970s and the quality was extremely bad,” said Andersson. “When I look at it today, it is extremely good, people [have an] extremely good attitude and [they have] brand new aircraft.
“We will grow exports 50% – I see a huge export potential for AvtoVAZ but we need to do it in accordance with the alliance – there is no benefit in selling vehicles in UK [and] France [for example].”
“If you talk to people in Sweden [Andersson is Swedish], Lada has very strong brand recognition. We want to sell Ladas to customers that want to have an affordable vehicle and is easy to repair.”
Andersson said he had no regrets at leaving GAZ Group: “Absolutely not,” he noted. “Leaving General Motors after 20 years was extremely difficult and I felt it was the right thing to do.
“GAZ Group has a very strong team and I am happy that [new CEO] Vadim Sorokin has replaced me. “
AvtoVAZ has the largest automotive site in the world and has six component operations such as stamping and gear boxes.
Andersson has retained his habit of conducting an early morning – 07:00 – meeting with all his department heads standing up, with the rapid briefing lasting no more than ten minutes.
