GAZ Group parent, Russian Machines says “not one rouble” is wasted in the company as it continues its efficiency moves to drive down costs in the business.

The vehicle division of Russian Machines revamped its line-up and last year alone either launched or modernised a product every month, while also increasing its export markets from 23 countries in 2013 to 33 in 2014 as part of tycoon owner, Oleg Deripaska’s busines plan.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

During the past five years, GAZ has spent more than US$1bn on new technologies as well as updating its product range which includes models such as the Next LCV, GAZon Next, Ural Next and Vector Next bus, as well as its contract manufacturing roles with Volkswagen, Chevrolet, Skoda and Mercedes-Benz.

“We did create 5,000 jobs with contract manufacturing,” Russian Machines CEO, Manfred Eibeck told just-auto in Moscow. “It was extremely difficult for GAZ during the crisis

“We have not one rouble exclusive for any fancy things. We are Russian Machines, 57,000 and we [had] some headcount reduction last year…to adjust to the downsizing.

“I am here now for more than eight years and we have built up five operations out of nothing. I feel it as an outsider – you really get a lot out of it if you give people freedom.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Eibeck added the company had undertaken significant refurbishment of facilities such as canteens and toilets, “which are like to a standard anywhere in the world, that is not the case some time ago,” while it was also introducing a one month pay bonus if the business achieves EBITDA.

“It is not fighting, it is making both sides understand,” said Eibeck. “It is important to keep the workforce involved. That will be one of our competitive advantages.

“This country was a manufacturing country and if we continue this, it can stabilise. With or without political issues, it will come anyhow. It is important we increase wages because we can’t lose people.”

Fellow-domestic Russian manufacturer, AvtoVAZ also revealed recently it had increased wages by 6%, with CEO, Bo Andersson noting to just-auto in St Petersburg, the company would dispense with a 13th salary month and switch instead to a profit sharing scheme.

GAZ president, Vadim Sorokin said all the manufacturer’s employees were also involved in a profit-sharing scheme “in proportion to efficiency.”