AvtoVAZ attracted South Korean supplier of components to Russia

AvtoVAZ attracts foreign component suppliers to the Russian production sites, said General Director of Rostec, Sergey Chemezov. Thus, the car factory managed to convince the South Korean Daewon, which makes frames for car seats, to place its production in Izhevsk.
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South Korea's Daewon seats localizes at the site of "IzhAvto" (one of the plants AvtoVAZ) Izhevsk production skeletons of seats for Lada Vesta, which were previously imported, General Director of "Rostec" (one of the largest shareholders of the plant), Sergei Chemezov at a briefing on Monday, December 26 . Now the work on this project: the selected part of subcontractors, equipment is adjusted. "The problem - as soon as possible to locate the frames", - he said, answering the question of RBC.

In 2013, Daewon attempts were made to locate their production for cars Lada Togliatti. Partner companies can be AvtoVAZagregat (at the end of August 2016 has been declared bankrupt), but the project was never realized. Contact Daewon representative failed on Tuesday.

In mid-October, another foreign company - Czech of Brisk - began producing in Russia spark plug. It is expected that the production volume will amount to 4.5-5 million candles a year, which will fully cover the needs of AvtoVAZ. Then Deputy Minister of Industry and Trade Alexander Morozov said that the development of production of automotive components in Russia is one of the key tasks of ministry. Russian car manufacturers need high-quality components that meet international standards, he pointed out.

Responding to a question at a briefing, RBC, Chemezov said that AvtoVAZ can increase the level of localization of new models due to the active involvement of foreign suppliers in Russia. According to him, before the company is to raise the problem of localization of Vesta and Xray over three years by 10 percentage points (Now about 40%).

Increasing the level of localization has been one of the main tasks that "Rostec" put before the new president of AvtoVAZ Nicolas Mohr in April 2016, when he was succeeded by Bo Anderson. From the first months Mohr began to strengthen ties with suppliers and work to increase the share of Russian automotive components in models of Lada, said a representative of the plant. During this time, Vesta has changed the gearbox on the foreign and Russian received the second 1.8-liter engine VAZ production. On Xray also replaced the engine on the Russian foreign, he added RBC. The last change occurred provider recently, in December, when the automaker made the order on the spring wire at Beloretsk Metallurgical Plant, which will replace imported counterparts.

As Moore reported in an interview with RBC in October, car factory will motivate foreign suppliers to increased localization in Russia. And last week, 21 December, the annual conference of the company's suppliers. It discussed issues related to improving the efficiency of interaction with local suppliers of AvtoVAZ. Priority Automobile task - to develop a base of local suppliers and localized, emphasized Moore, speaking at the conference (his words are contained in the press release). "Development of areas the production of automotive components in the neighborhood of AvtoVAZ provides undeniable advantages in terms of security of supply, optimal prices and immediate feedback on the quality" - he said.

If foreign suppliers to establish their production in Russia, it will have a positive impact on the level of localization of Lada cars, agrees to the executive director of the analytical agency "AUTOSTAT" Sergei removed. According to him, the localization level is Vesta and Xray in this case may rise to 80%. And foreign producers this can be beneficial because they will be able to supply its products not only to AvtoVAZ, but also to other car factories, such as Volkswagen, which has a plant in Kaluga, the expert points out.

"The localization of components production in Russia interesting for the producer [of cars]: he receives a reduction of costs for logistics and reasonable price to high-quality components," - says a representative of the Nizhny Novgorod group of companies "Autocomponent" (supplier of AvtoVAZ).