Kamaz and Sollers are discussing the formation of an automotive alliance

Kamaz and Sollers are discussing the formation of an automotive alliance


 

Vedomosti.- The largest Russian truck manufacturer Kamaz and one of the leading car and LCV manufacturers of the country Sollers have intentions to establish an automotive alliance. The relevant statement has been made to Vedomosti by a source close to Kamaz . The principal decision as to the creation of the alliance with Sollers has been taken, the Kamaz representative added. There’s a will to form an alliance, however, the question is “How to elaborate the process?” said a Sollers representative.

The establishment idea of the alliance has already been presented to the new head of the automotive industry the Deputy Prime Minister Yuri Borisov and the supervisors of the Ministry of Industry and Commerce, as told by one of the sources of Vedomosti.

The road map of the automotive alliance is currently being formulated. The companies intend to implement joint investment projects in car component production and the development of new technologies and digital transformation in marketing and sales at the first stage, as expressed by a source close to Kamaz. “First of all, the alliance will cooperate in the creation of new forms of demand for commercial vehicles and develop digitalisation technologies for sales and marketing” – as told by a source close to Sollers. Another interesting fact, according to the source, will be the money saving as a result of economies of scale, through joint procurement. Such transactions will also work in favour of the joint ventures of both companies, as emphasised by the source.

The decision on the schedule of the automotive alliance will have been taken by the end of 2020, the sources of Vedomosti added. There are many versions possible, including the union of the companies, as stated by the source form Kamaz. However, such a radical measure is not yet on the cards, as noted by the source from Sollers. The founder and the owner of Sollers Vadim Shvetsov hasn’t got the intention to leave the business yet. As explained by the company representative, the alliance with Kamaz is perceived by Sollers as the most rapid and effective way of growth for both companies possible, which is a strategic priority for Shvetsov.

The interest of Sollers in the automotive alliance with Kamaz, amongst other reasons, is due to the possibility of expansion of market niches, as noted by a source from the company: “The companies are not competing against each other in model ranges, but cooperating on the contrary”.

LCV production is one of the aims of Kamaz, along with the expansion of the model range of medium-tonnage trucks, as told by a company source.