9 april 2013

Prime Minister Dmitry Medvedev visits Gorky Automobile Plant

Participants:

During his visit, the Prime Minister inspected the Volkswagen/Skoda welding shop and walked through a section of the plant where the discontinued Volgas had been assembled.

Stopping at one shop area, he watched structural side panels being installed, and inspected three car bodies inside and out.

The Prime Minister was shown a trim line and a conveyor belt that was moving finished items elsewhere.

In addition, Dmitry Medvedev inspected a quality control centre where high-precision automated instruments gauge items for conformity to standards as human operators simply confirm that the numbers are within tolerance. A Skoda Yeti’s hood and door were measured in his presence.

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While visiting the Gorky Automobile Plant, Prime Minister Dmitry Medvedev attended the launch of a new GAZelle Next van production line 

The Prime Minister was told how the new model was developed and appreciated its advantages. He congratulated the staff on the GAZelle Next launch and pressed a symbolic start button. After that he signed his name on the hood of a new GAZelle Next.

The Prime Minister also inspected a display of GAZelle Next modifications lined in the shop.   

Dmitry Medvedev’s speech at the car launch ceremony:

Good afternoon, friends! Good afternoon, colleagues! I want to congratulate you on the launch of production of the Gazelle Next. The launch of a new model is always an exciting event. The volume of investment is pretty decent, about 3 billion roubles, but most importantly, this is really an investment in the future and the name of the model itself is evidence of this. I hope that this model will be competitive. 

It is crucial that you upgrade the production base and adopt so-called flexible plant technology, something which I have just been briefed on in detail. These kinds of modern production lines make it possible to rapidly change production and quickly respond to changing demand, which is probably the most important thing in the world today.

GAZ has always been a flagship of our Russian auto industry, and will remain so, of that I’m absolutely certain. Over 300 vehicle modifications, an extensive range of load capacity – this is impressive; this is an achievement of recent years. Most importantly, GAZ production is in demand among a wide range of consumers – small and medium-sized businesses, utilities services, emergency services and law-enforcement agencies. I’m sure that our models have a bright future both in Russia and hopefully abroad.

Production must increase despite the difficulties that currently exist in the global market. By the way, we have some facts – over the last 10 years, labour productivity has quadrupled. This growth is a general indicator of our economy. Currently, we are making similar changes in virtually all industrial sectors, and here GAZ is a great example for other sectors to follow. 

Of course, we have to pay attention to energy-saving technologies and professional training, which is something that you are  in fact already doing, not only on your production sites but also in foreign car-making facilities. I’m sure that all this will give you a competitive edge.

I congratulate you again on the launch of the new model. I’m sure it is promising and has a place in the market. And, of course, I want to wish you all a safe journey – all those who are working, who have invested part of their souls into the new model. Let’s get started.

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Automobile Plant GAZ, a subsidiary of GAZ Group, is a leading producer of light and medium commercial vehicles. GAZ Group includes 13 assembly plants in seven regions of Russia and accounts for 50% of the light commercial vehicle market, about 40% of the four-wheel-drive heavy truck market, and around 65% of domestic bus sales.

Automobile Plant GAZ employs 25,120 and includes the following facilities: a car and truck assembly plant, a paint shop, a specialty vehicle manufacturing shop, a frame extrusion facility, and a service centre.

In 2012, GAZ produced more than 104,000 light commercial vehicles, medium-duty trucks, and microbuses for sales of over 66 billion roubles. A production system introduced ten years ago made it possible to boost labour productivity by 300%. New product and research investment will amount to 17 billion roubles between 2013 and 2015.

The main investment projects include:

-         production of the new GAZelle Next, a new-generation light commercial model (2.7 billion roubles in investments);

-         developing a new family of medium trucks, the MCV Next;

-         updating GAZelle and Sobol model lines;

-         updating the medium-duty truck line;

-         production of a new gas-powered light commercial vehicle.

An important development direction for GAZ is its cooperation with leading world automakers Volkswagen, General Motors and Daimler in producing vehicles under their brands.

Under these cooperative projects, GAZ installed new assembly and welding shops (in 2012), modernised the paint line, upgraded its logistics and quality control system to its partners’ standards, and created new jobs.

Currently GAZ is preparing to launch the GAZelle Next production line, a new family of light commercial vehicles combining state-of-the-art technology, the latest ergonomic upgrades in a package with security and reliability, a low price, economic efficiency, and a simple, low-maintenance design.