Rus News Journal

We preliminary nakidali with Daimler about two tens projects

About joint plans of KamAZa and Daimler, and also about position of the Russian factory in the conditions of crisis general director KamAza SERGEY KOGOGIN has told.
- Whence there was an estimation of KamAZa in $2,5 mlrd?

- it is more logical to address the Question to shareholders of KamAZa who conducted the basic part of uneasy negotiations with Daimler. But today`s market capitalisation of KamAZa does not reflect its real cost. That estimation which has been used in the transaction, is based on financial results of KamAZa for a half-year and nine months 2008.

- Daimler can receive a controlling stock of KamAZa?

is always was intention Daimler. Another matter that is not present today necessity to discuss this question.

- why?

- Because there is no exact forecast when the world market is stabilised.

- In what then sense to buy 10 % if there is no confidence of necessary increase in this package to the control?

- This question again at the wrong door, but in concern repeatedly told about a great interest to the Russian car market.

- depict priority projects with Daimler.

- the First is utility truck Fuso Canter. KamAZa already have a truck of a similar class (model 4308. - ) and experience in this segment. Model 4308 is on sale steadily enough, with this car there are no problems, but it, will tell so, is created from this that is. In full weight it gets to a segment of 12 tons, and it is very narrow segment, and we understand that all the same the smaller truck - 7 tons is necessary to us. On our own knots and units to build such car it is unpromising. Fuso Canter - very quite good decision in this segment.

- will cost how many the project?

- Yet did not consider, but otsenochno in area 21,3 million

- Whose it will be money?

- we Will invest together with the partner (Daimler. - ).

- What else projects will be priority?

- As a whole in process due diligence we preliminary nakidali with Daimler about two tens joint projects, and now it is necessary to make the FEASIBILITY REPORT on each of them. One of the major is a possible inclusion of KamAZa in global system of suppliers Daimler. It is not excluded that we will deliver moulding and pokovki to German concern. Summer of the price for metal in Russia were other-wordly, to sell something from metallurgy basically it was impossible. Now the price for metals has gone downwards, and possibility of inclusion us in a global network of suppliers Daimler is a step forward, especially in the conditions of such situation in the market of cars.

- whether managers Daimler Will be - to take part in management of KamAZom a top?

- the Package bought Daimler, allows concern to spend one representative to factory board of directors. As to a top - management Daimler in negotiations to me brought an attention to the question so: tell, who is necessary to you?

- and who is necessary to you?

- we Will look, it becomes already clear under projects. For today Daimler has highly appreciated potential of our management command, questions on replacement of managers were not. If they have bought 42 %, probably, would reflect on replacement of some positions. And at 10 % to be engaged in a reshuffle of personnel structure of sense is not present. In this question, most likely, the initiative will be mine.

- in what condition of KamAZ goes on the transaction with Daimler?

- Position, of course, difficult. The main reason - a sharp collapse of the market which has occurred literally for a month. It has begun in October, November was even worse; that with December - while it is not clear. Now there are incidental sales, but systems of work of the market which was before crisis, already are not present. If market recession was not such sharp, we would not feel it: we would have a possibility operatively to reduce an expense, to regulate the rests and other. But the collapse within one month has put in a difficult situation not only us, but also all enterprises of mechanical engineering which are engaged in output of the big repartition.

our sales have fallen from 4 thousand to 1 thousand cars a month. In warehouses of KamAZa now 4,9 thousand cars. An exact estimation of dealer stocks I will not name. On the beginning of December they made 2 thousand cars, and now, I think, at 1,6 thousand level

- That is polutoramesjachnyj volume of output?

- Yes. In the growing market it not critical volume, but in conditions stagnirujushchego the market it is, of course, serious.

- What investment projects were stopped by KamAZ?

- Since October all our investment programs have stood. We have not closed them, have simply suspended. It is impossible to close a part of projects. The exit from them is more expensive, than an input. First of all - the project with German Zahnrad Fabrik on release of transmissions. The equipment for it is ordered, basically is ready, and we cannot stop it any more. Another matter, what we were guided by check point volume of output where - that at 90 thousand level in a year, and now we think to reduce it to 30 thousand

- the Project remains profitable at such volumes?

- Yes.

- the Equipment is paid?

- Any advance payments are paid. We will redeem and further.

- Money for it will be?

- Will be.

- ask for the state?

- We carry on negotiations for parametres of financing of projects not so much with the state, how many with our foreign partners. So, with ZF parity financing of the project of manufacture of a check point (150 million - " was supposed; ). Now we discuss other variants, in detail I can not speak.

- what situation with creation of the joint venture with American Cummins on release of engines?

- In this project there is a pressure of our American partners which would like to lower the risks. Project cost - $89 million (financing was supposed parity. - ), the equipment also is already ordered, and the project stop is undesirable.

- suggest Cummins to lower volume of your investments?

- Is not present, there a situation another. Initially we expected together with Cummins to let out 24 thousand engines. It was supposed that this volume will be claimed, as KamAZ planned to increase accordingly release of the trucks (now the factory lets out on 50 thousand trucks and engines a year. - ). But it is not excluded that in the conditions of falling of the market the release volume remains at present level. In this case we will be as much as possible interested in completing trucks with the Russian engines. The project anyway will be, but we still should agree with Cummins, in what format. I insist, that the volume of release of the joint venture remained at least within 50 % from declared.

- also what Americans speak?

- While there is a discussion process. Starting investments into the project are made, and all understand it.

- whether there are projects which are not frozen?

- the project with Federal Mogul is least subject to fluctuations. Intentions of this company regarding work on tsilindroporshnevoj to group very firm, they actively are engaged in it, and we, from its part, in the project have executed all obligations. Besides, we have not touched our program of research and development, that is working out of new models of trucks, lineup updating. It for us a sacred cow. And projects with foreign partners are reconsidered mainly because all of them have been calculated on the growing market. We now in general globally correct our plans till 2012, after all is already unevident that to the market it will be necessary for 120 thousand our trucks annually.

- as the volume of investments till 2012 will change?

- We estimated it at level $1,8 billion What there will be a real figure, cannot tell yet.

- state financing will ask?

- We have made an application in Foreign trade and investment bank with the request to allocate about $430 million for financing of some projects, but decisions which are accepted at the state level, demand time - we will tell, half a year. Therefore in parallel we try to optimise independently cost of projects, and the demand in veb we consider as spare airdrome. In general, if to speak about crisis, I firmly realise what not all automobile companies, including in Russia, will worry it.

- who will not worry?

- Without comments.

- name at least criteria of a survival.

- High volumes of output and localisation level. Those manufacturers who have no totality of modular base, will have problems first of all.