Chevrolet-Niva (Lada Chevrolet)
CJSC GM-AVTOVAZ started its existence from the 27th of June in 2001 when the general framework agreement was signed by representatives of General Motors, AVTOVAZ and European Bank for Reconstruction and Development. Joint Venture was set up at the foundation meeting on the 30th of July in 2001 and was registered in Russian Ministry of Justice on the 2nd of August in 2001.
First employees were recruited on the 27th of August in 2001 and the excavation works at the site started in October.
Design and image auto in Russia
The shareholders contributed capital is $238.2 million:
General Motors – $99.1 million by cash and equipment, 41,61%;
AVTOVAZ – $99.1 million by intellectual property (patents and trade mark on Niva 2121), buildings, etc., 41,61%;
European Bank for Reconstruction and Development (EBRD) – $40 million in cash, 16,78%, and loan facility for $100 million
The total amount of investment into the project scheduled for $338.2 million. It includes:
82.3 million – cash,
63.6 million – intellectual property,
92.3 million – equipment,
100 million – EBRD loan
The total area of the Joint Venture is 137 564 square meters . It includes:
Finish Body Shop (major dyes and frame body lines outsourced to AVTOVAZ);
Paint Shop (inaugurated on the 2nd of April in 2003);
General Assembly and Auxiliary Workshops;
Dispatch area with vehicles pre delivery operations.
Production and Sales
In 2002, 456 cars rolled off the JV’s production line, in 2003 – 25,235, in 2004 – 55,150, in 2005 – 51,810, in 2006 – 47,881, in 2007 – 55,052, in 2008 – 54,654, in 2009 – 23,101, in 2010 – 36,996, in 2011 – 57,765, in 2012 – 62,981, in 2013 – 57,939, in 2014 – 45 067 Chevrolet NIVA cars.
Totally, since the Start-of-Production 596.402 Lada Chevrolet cars were sold, including 44.001 cars to SIC countries (as of 10-01-2015).
156 dealers provide Chevrolet NIVA sales in Russian Federation together with 8 dealers and 3 distributors in CIS countries.
The Joint Venture production philosophy is based on lean production concept (GM-GMS system) which is standard for any GM Corporation facility throughout the world. The main element of this concept is how to reduce wastes of all kinds and ensure manufacturing of quality products which is achieved through strict input and output control as well as standardized procedures, personnel training and motivation. From the 1st of July in 2002 the SAP system was introduced at the plant and it is successfully operational ever since. Currently it is being upgraded and developed.
Policy in the Field of Environmental
«GM-AVTOVAZ» being the manufacturer of the automobiles, realizes the responsibility for Environmental protection and takes up obligations:
To prevent Environmental contamination;
To carry out activity according to applicable legal requirements and requirements of GM-AVTOVAZ Environmental Management System, corporate requirements of General Motors and other requirements related to its environmental aspects;
Constantly improve Environmental Management System;
To use natural resources rationally;
To demand from all personnel of the company to perform works according to working rules and norms of protection of the Environment;
To train the personnel with the purpose of a level increasing of its ecological consciousness and understanding of the personal responsibility for the Environmental conditions;
To organize works by a principle: it is easier to foresee and prevent pollution than to eliminate its consequences;
To plan, supervise and improve ecological parameters of the activity with the purpose of decreasing the influence to the Environment.