Cooperation between Russian and foreign companies

Cooperation forms JV Contract assembly Licensed assembly Outsourcing Technopark / Suppliers park Partnership with international organizations, associations Development of production technology Delivery of foreign equipment Delivery of foreign components, raw materials Acquisition of Russian company Import

Reasons for cooperation Russian companies Lack of quality/business process experience Poor quality management in the workshop Few or no experience/relationship with foreign OEM, Tier 1 Lack of technology, raw materials, components Foreign companies Few or no experience in Russia Specific Russian customers requirements Production facilities of Russian partners

Joint Ventures of KAMAZ Source: KAMAZ JSC NameDate of EstablishmentPartner CompanyManufactured Products ZF CAMA LLC2005Zahnrad FabrikJV for gearbox production CUMMINS KAMA2006Cummins Inc JV for series B engines for the Russian market. The plant manufactures electronically controlled Euro-3 and Euro-4 engines. KNORR-BREMSE KAMA2007 Knorr-Bremse Systeme für Nutzfahrzeuge GmbH JV in Naberezhnye Chelny for production of brake gears Federal Mogul Naberezhnye Chelny 2008 Federal Mogul Corporation JV for production of cylinder and piston group components Fuso KAMAZ Trucks Rus2009Daimler AG JV for production and sales in Russia of Fuso Canter light trucks Mercedes-Benz Trucks Vostok 2009Daimler AG JV for production and sales of Mercedes-Benz Actros and Axor heavy-duty trucks CNH KAMAZ»2010CNH Global NVJV for production of agricultural and construction vehicles

GM Suppliers Joint Ventures PCMA Suppliers

Autocomponental Suppliers for foreign Vehicles

Vehicle Production

Potential direction for cooperation Fuel system Exhaust system Interior Wheels Air conditional system Electrical and electronics Steering system Shock absorbers Suspension modules Braking system Cylinder and Pistons Clutches Turbo charges Gasket Starters and alternators Cranktrains Gearbox components Propeller shafts Automatic Transmission

GAZ GROUP: Potential direction for cooperation Wheels Brake systems Steering systems Fuel SystemsClutchesForgings SuspensionCastingsGearbox

AVTOVAZ: not competitive directions AVTOVAZ Valves Manual transmission Block Management Injection system Cast partsClutchChassis

AVTOVAZ: Location of production in Togliatti Special Economic Zone Lighting Suspension of the powertrain Exhaust system Wiring harnesses Window regulator Mirrors Wiring harnesses Steering

Import of autocomponents in Russia in 2010, USD mln Sources: FTS, Russian Automotive Market Research Country Parts of Suspension System Parts of Braking Systems Body PartsSteering Parts Light and Lamps Engines and Parts Total Germany229,9127,8338,6172,956,5199,71125,4 Korea117,726,8187,543,214,7183,9573,7 Japan67,920,6223,823,316,4128,2480,1 Slovakia123,90,931,823,922,7185,2388,3 Poland67,624,27220,819,883,8288,2 China38,123,274,633,921,796,4287,9 Czech Republic38,66,155,77,49,5123,2240,5 Finland31,241,842,633,724,154,5228 Romania30,69,4807,55,129,7162,3 Italy21,7766,68,83,148,1155,3 France13,55,712,924,9466,3127,3 Lithuania31,618,91712,57,528,9116,4 Ukraine7,112,38,258,4319,7108,7 Spain11,91,454,710,229,698,8 Netherlands13,51526,619,29,56,490,2 Hungary24,110,171,11,239,182,7 Belgium13,86,317,35,75,82978 United States11,65,621,419,73,713,976 Latvia17,513,810,612,75,414,574,5 United Kingdom1826,78,50,533,569,3 Others87,746,2119,143,620,355,9372,7 Total1017,5425,1147,5582,7254,91469,45224,3

Dynamics of imports of autocomponents by type, USD mln Type of autocomponents Dynamics Parts of Suspension System585, ,92% Parts of Braking Systems320,742532,52% Body Parts970, ,00% Steering Parts491,158318,71% Light and Lamps184,325538,34% Sources: FTS, Russian Automotive Market Research

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