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2. Lebedev К.К., Senior analyst of IFS Pankratova D.A. Analyst of IFS Evolution of industrial assembly regimes is the requirement for modernization and development of Russian car industry.

3. Production of autocars in Russia Source: АЕВ 3

4. Production and sales pattern of autocars in Russia *) UAZ, GAZ, TAGAZ Source: АЕВ 4

5. Assemblage kinds  Semi Knock-Down.  Licence assembly.  Industrial assembly regime.  Strategic alliances. 5

6. Foreign brands’ assembly plant in Russian Federation Assembly typePlantModels SKD-assembly«Avtotor» BMW, Cadillac, Chevrolet, Hummer, KIA Licence assembly «Tagaz» Sollers Ssang Yong, Hyundai Ssang Yong Industrial assembly «Izh-Avto» «Avtofamos» Toyota Volkswagen Ford GM Nissan P&C Hyundai KIA Renault Toyota VW, Skoda Ford Chevrolet Nissan Peugeot, Citroën Hyundai Strategic alliances Ford-Sollers АvtoVaz – Renault Ford Lada, Renault 6

7. SKD SKD ─ cars’ assembling from imported major components and aggregates assembled on the principle of constructor. Peculiarities of SKD regime: Absence of assembling production localization Low custom duties Comparatively inconsiderable quantity of working places Insignificant input in GDP 7

8. Licence assembly– Cars’ assembly of totally disassembled vehicle sets. Beginning from this regime the localization facility started its work. localization – Manufacturing process management of details and components of different technological complexity at the enterprises of assembling country. Licence assembly 8

9. IAR ─ car assembly of totally disassembled vehicle sets, including welding, coloring, decoration and testing. Particularities: Localization of manufacturing process is written as a term. Minimum production volume – 300 thousand cars per year (earlier 25 thousand). Minimum localization percent – 60% (earlier 25%). Industrial assembly regime (IAR) 9

10. Strategic alliance «AVTOVAZ» – RENAULT Import of technologies and management standards. Cars under Lada trademark. Joint venture company for production of car components. Localization increase up to 75%. SOLLERS – FORD Production of passenger and commercial cars Ford and engines. Process structure of stamping operations (at the plant in Elabuga). R&D. 10

11. Evolution of assembly regimes 11 SKD LicenceIAR Strategic alliances SKD (Semi Knock Down) Localization «at will» Obligatory localization Direct technological import TAGAZ Vega Competition of models Technologies Transmission and motor 1997 1998 2002 2008 2012- 2015 years till 2025 year 1. Automobile claster 2. Diversification of model range of domestic car industry 3. Export expansion and import substitution 4. New growing-point in economics 1.Import and adoption of technologies 2.Import and implementation of quality management standards 3.Forming and development of claster Competitive Auto industry

12. Base elements of Russian modernization and development strategy 1.Scale way of development. 2.Long-term cooperation. 3.Forming of conditions for automobile clasters’ development in the Leningrad and Kaluga Regions. 4.Severization of localization percent requirements. 5.Plans of manufacturers to export foreign brands made in Russia to the countries of Eastern Europe. 6.Structuring of business struggle facilities among the manufacturers. 12

13. Thanks for your attention! 13