The new company is a 100% separate subsidiary company of Gorky Automobile Plant registered in Nizhny Novgorod. The following facilities have become a part of it: stamping, welding, painting and assembling. The major field of GAZ Automobile plant Ltd activity is assembling of cars, trucks and buses. The reorganized OJSC GAZ will manufacture vehicle components, supply manufactured half-finished products, parts, units and assemblies to assembly lines of the established company.
Valeriy Beketov, former Trucks and Cars Production Manager, is appointed General Director of GAZ Automobile plant Ltd.
Turning the assembly facility into a separate subsidiary company is one of the principle points of implementation of effective GAZ management policy aimed to achieve the production structure similarly to world leading automotive companies.
Other companies of RusPromAuto holding company Pavlovo and Likinsk Bus Plants are also being restructured. The main purpose of reorganized assembly facilities is to meet the customers' needs and quickly respond to their requests. At that production facilities of Pavlovo and Likinsk Bus Plants will start operating in competitive market and production facilities will be given an opportunity to affect quality and prices of components.
Such an approach allows effectively control the cost and quality of products at different stages of production. Besides, turning assembly facilities into separate subsidiary companies makes cooperation with foreign partners more perspective. Those foreign business partners are interested in carrying on business with the end manufacturer not with the whole company.