FAW intends to jointly manufacture heavy trucks in Russia with GAZ Group



According to Russian media reports, China FAW and Russia’s GAZ Group recently signed a memorandum of cooperation to produce Chinese heavy trucks at the Ural plant in GAZ. Critics said that Russia is likely to cooperate with China because it is currently unable to attract investments from leading global automotive companies such as Europe and Japan.

Relevant parties believe that the agreement between the two parties is a mutually beneficial cooperation. The success of the project will depend on the factory's production capacity and the strength of investment. Columnists of "RusBusinessNews" believe that before GAZ Group planned to introduce automobile technology from Japan and Europe, it failed to do so.

The agreement of the joint venture stipulates that the Russian GAZ Group will rely on its own service management system and will be responsible for automobile production at the Ula Factory. FAW will provide technical support and a sales network. Specific models and production are still under discussion. In order to better adapt to the Russian market, Russia hopes that the truck can be modified to match its own production of the engine. GAZ Group produces YAMZ-650 and YAMZ-530 engines in Yaroslavl, Russia. Both engines were jointly developed by Russian and Austrian designers. FAW will compete with Russia's domestic and other foreign car companies for Russia's construction and engineering markets, and the advantages of GAZ Group's distribution and service system will help new models accelerate their entry into the relevant markets.

For this cooperation, Roman Susenko, marketing director of FAW-Eastern Europe, stated that the signing of the memorandum only indicated that they did not oppose the proposal of cooperation, but did not rule out the possibility of changes. The GAZ Group hopes to install its own engine, but the YAMZ-530 engine will not start production until next year. Untested engines cannot be equipped with complete vehicles. Localization has not yet reached a clear plan, and FAW has not stipulated its market share in Russia. Roman Susenko emphasized that FAW's entry into the Russian market will not crowd out any Russian company. “KAMAZ (Russian heavy trucker) is our competitor, but both trucks are not comparable in price or quality. Russian trucks, FAW's heavy trucks are European styles."

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