The costs of UAZ have increased by a third

No time to read?
Get a summary

The cost of UAZ vehicles has increased by 32% since February 2022, the head of the Ulyanovsk Automobile Plant Adil Shirinov shared this revelation during a recent meeting with the governor of the Ulyanovsk region, Alexei Russkikh, following the publication of the regional source Ulpressa. ru.

According to the top manager, UAZ had to hastily replace a number of suppliers from the European Union (Bosch, Joyson, Continental) with manufacturers from Russia and friendly countries – China, Turkey, Belarus.

The full list of replaced parts will not be disclosed, but these are known to include protection systems, vacuum boosters, engine control units and hydraulic units.

The one-third increase in prime costs was mainly due to the increase in logistics costs (+60%), the components themselves (+32.3%) and electricity tariffs (+7%).

Further, UAZ will consistently switch to Russian component suppliers – this is more reliable and cheaper in terms of logistics.

In January-June 2022, UAZ sales in the domestic market fell by 26% to 9,720 units. In the second half of the year, UAZ hopes to increase production volumes – thus compensating for the decline in the first half of the year.

Recall that at the end of June, entrepreneur Vadim Shvetsov sold his stake in the Sollers holding (76.4%) to a group of top executives of the company – Adil Shirinov, Zoya Kaike, Viktor Khvesen and Nikolai Sobolev. Sollers includes UAZ and ZMZ, the holding also co-owns the factories Sollers-Ford and Mazda-Sollers.

  • “Driving” can be read in viber.
No time to read?
Get a summary
Previous Article

Bernard Arnault will strengthen family control over LVMH

Next Article

Russia and Ukraine sign an agreement to remove barriers to grain exports