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Russian car market welcomes new GAZelle Business in Nizhniy Novgorod
Published: 05 February, 2010, 12:44
Edited: 06 February, 2010, 11:33
TAGS: Markets, Russia and the global economy, Big deal, Economy
While other Russian carmakers have been plagued by problems during the financial crisis, GAZ has unveiled a new commercial van – the GAZelle Business.
Russia’s car market was one of the fastest growing ones, even surpassing Germany as Europe’s largest at one point. However, ever since the crisis began, the Russian Automotive industry has been reeling, with sales dropping by almost 50% in 2009.
Whilst many car manufacturers were struggling in the crisis and looking for government help, others were quietly reforming their strategy and product portfolio. One of the examples is Gaz Group, which is doing things its own way. The group is combining local and international components to create cost effective solutions for its consumers, such as the GAZelle Business, which was brought into serial production in Nizhniy Novgorod yesterday.
Car manufacturers have been scrambling to try to produce cars that are cheaper for the end-user, often neglecting quality and comfort in the process – something GAZ is keen not to replicate. Pavel Zhygalov, Director of quality control at Gaz Group, adds international experience will help.
“The principal differences in our new model are new active and passive safety systems, new brakes and climate control, among other aspects, which were outsourced and designed by international companies like ZF and Bosch.”
The optimism at GAZ is a timely reminder of what can be achieved by Russian carmakers. Future cheap, no-frills models have been promised by the company, and it hopes to increase sales by 13% in 2010.
05.02.2010, 12:15
3 comments
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And this is true innovation for them, they took their step to align their business with the market and there they have it, the rewards. They took the components from where they had to, to create a winning customer proposition. Innovation can be localised, it doesn't have to be innovative for everyone, it can be just within your company. This is the way forward for creating companies that are thinking and fending for themseves, these are the companies who have created the right mindset within them, these are the ones that should be given funding to grow and further lead. Leadership can come from anywhere, and that is the way it should be. Yes the economy had to be stabilised with some big industrial companies propped up to save jobs temporarily. But it is wrong to think all those companies will lead, because some will have invariably the wrong mindset, So let's see more of this, more componies delivering first rate propositions to their customers, more companies changing and innovating within theselves to meet business challenges. Then wider more gobal innovation will happen. There are alot of companies out there trying to do exactly this. The help we need is to free the route to markets more and more from corrupting influences. Because that is what is stifling innovation at the moment. Open our markets to our innovators and protect the fruits of their work. These are the steps that need to be taken. That means police the markets for uncompetitive or corrupt practices directly, protect the ownership and rewards of the companies and individuals, with pressure placed on local police to do so, then make sure funding is available for viable innovative growth projects. Give the puck to the ones who can skate with it, not the ones who hold it against the boards with their skates. The game needs to flow fast and freely.