Warranty incidents per thousand vehicles

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Continue leadership positions
on the commercial vehicle market
Bo Inge Andersson
President & CEO, GAZ Group
August 2010
GAZ GROUP PRODUCT STRATEGY
Light commercial
vehicles
Buses
 Current Gazelle
improvements
 New family of low
floor buses
 Updated power
train
 Alternative fuels
and
environmental
solutions
 Diesel engines
 Alternative fuels
 Process &
product quality
continuous
improvement
 New Gazelle
development
 Bus modular
concept
development and
implementation
across all bus
segments
Power train
 Modernization
and upgrades to
improve
performance of
gasoline engine,
 LPG and CNG
options
 Light diesel
solution
 Euro 4/5/6
 Medium diesel
development with
AVL
 Heavy diesel,
Renault license
Trucks
 Off road truck
product line
upgrade and
development
 New Truck
portfolio to offer
medium duty
trucks, road
trucks and offroad vehicles
with different
GVW
Passenger cars
 GAZ to utilize
modern
manufacturing
capability and
open capacity
 Ongoing
discussions with
the major global
players
 Opportunities for
components
localization
MAIN FOCUS AREAS
Quality
improvements,
warranty claim
reduction,
reduce cost of
ownership
Improve
operational
efficiency
Sales increase for
all GAZ Group
Divisions
New products
LCV QUALITY IMPROVEMENT
Quality performance results July 2009 – July 2010 (12 month)
Warranty incidents per thousand vehicles –
2 months in service (2MIS IPTV )
reduction by 37%
Supplier incidents per thousand vehicles
(IPTV)
reduction by 46%
MFG direct run loss – average number of
defects per vehicle in production ( DRL)
reduction by 35%
IMPROVE OPERATIONAL PERFOMANCE
Projects
Implementation of direct pull system:
Sales  production  purchasing
Facilities consolidation
and optimization
By 42%
In-process inventory
reduction
By 60%
Extra equipment
elimination
By 46%
Revenue per employee
increase
By 47%
Facilities consolidation and optimization
Results
Consolidation and creation of
processes/material flows next to assembly
lines
Work stations standardization
Cost reduction
(12 months)
GAZelle CONTINOUS IMPROVEMENT
CNG
GAZelle 4,2t
4х4
GAZelle
Business +
Diesel
 Reduced cost
of ownership
LPG
GAZelle Business  Reduced

cost
of ownership
 Improved
reliability
 Product
extension
 Improved
consumer
properties
 Warranty
retained for
engine and fuel
system
SOP:
4.02.2010
SOP:
10.04.2010
line
 Reduced fuel
consumption
 Expansion of
product line
 Extended
engine service
life
 Improved
gearbox
July 2010
 Improved
frame rigidity
for long
vehicle
 Extended
product line
in
4х4
segment
 Payload
increased to 2
tons
 Extended
product line
 Reduced cost
of ownership
 Extended
product line
 Extended
engine offering
 Retention of
warranty on all
vehicle’
elements
 Improved
body stiffness
for metal van
versions
 Use of the
cheapest fuel
for today
 Exhaust
system with
improved
corrosion
protection
 Immobilizer
December
2010
February
2011
February
2011
March 2011
GAZELLE-BUSINESS IMPROVEMENTS and CUSTOMERS VOICES
Safety
 Steering
Fuel Efficiency
10%-Petrol;
20% - LPG
Warranty
80 000 km Vehicle
 Braking (brake response)
 Suspension
100 000 km systems
Cost of
Ownership
20%
 Heated mirrors
 3-point seat belts
 ABS ( 4x4 & BUS)
 Energy-absorbing steering
column
Вячеслав Лымарь, Ижевск,
предприниматель:
«Моя «Газель» окупила себя за
9 месяцев. Опять же – не имею
возможности простаивать месяц.
А для «Газели», если что,
запчасти всегда под рукой.
Алексей Зарипов, Пермский
край, предприниматель:
«Эта машина помогла мне стать
хозяином своей жизни. … пока со
мной мой автомобиль, мне не
страшно оказаться без работы, я
сама себе начальник, я спокоен
за себя и свою семью».
Андрей Логинов, ген. Директор
ООО «Автотен»:
окупаются быстрее и дешевле,
учитывают специфику именно
российского бизнеса перевозок,
чего нет у иномарок. .. достойной
замены мы на сегодняшний день
не видим.
NEW BUS PRODUCT and 2010 LAUNCHES
PAZ-3204-12
length: 8,5 м.
engine: CUMMINS (YMZ)
transmission: ZF
axle: KAAZ
PAZ-3204
length: 7,6 м.
engine: CUMMINS (YMZ)
transmission: ZF
axle: KAAZ
GOLAZ 5251
LIAZ-5292
Intercity
engine: YMZ
transmission: ZF
axle: RABA
City, low floor
Hybrid
(EURO-6)
HEAVY DUTY TRUCKS PRODUCT DEVELOPMENT and 2010
LAUNCHES
URAL Е33 – Е40
Heavy duty off road vehicles for
commercial applications with GVW 33-40t,
flat nose cab
.
URAL Е13 – Е26
Off road vehicles for commercial
applications: major facelift, conventional
and flat nose cab
MAJOR POWER TRAIN 2010 LAUNCHES
Medium diesel YMZ-530
Heavy diesel YMZ-650
4 & 6 cylinders
4.4 L/6.6 L
Cooperation with AVL
6 cylinders
11 L
Renault license
SUMMARY
GAZ Group is aimed at customer satisfaction
GAZ Group set the direction for improvements in quality
and cost of ownership of its products
GAZ Group constantly strives to improve and update its
diversified commercial product vehicle portfolio
GAZ Group will be successful by having a collaborative
relationship with its dealers, suppliers and customers
GAZ Group will continue to be the market
leader in commercial vehicles in Russia
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