“AvtoKrAZ” reduced overall production

The financial and economic crisis has had a negative effect on the operation of “AvtoKrAZ” Holding Company. Though, volume production development for the 9 months period of 2008, as compared to the same period of last year, has reached 107%, and for the 10 months period – 101%, in November it will probably decrease.

3360 vehicles and complete knock down kits have been manufactured for 10 month period of current year. Products sales has amounted to 915,3 million UAH for this period, which is 200 millions up than for the same period of the last year. 267 vehicles and complete knock down kits were assembled on the main assembly line in October. Production volume expected in November-December is up to 200 vehicles.

To ensure stability the company has gone on four-day week and held headcount optimization. Reduction in staff came to 3, 5%. But these measures have not affected highly skilled workers and graduates.

The programs related to new design development and production modernization are considerably trimmed. Financial resources are concentrated on fulfillment of particularly important tasks.

In spite of economic turbulence practically none of our company partners withdrew or reduced order, however fulfillment of many of them is on hold due to credit crunch.

The company continues with performance of contract for delivery of automotive vehicles to the countries of Latin America, Africa and Middle East. The deliveries are in progress as well; a range of contracts for delivery of different models of the KrAZ trucks to Azerbaijan, Uzbekistan and Turkmenistan has been concluded. The sales of the vehicles to state-owned organizations are going on: regular batch of 30 vehicles is delivered to the Ministry of Defense of Ukraine, the work with the Ministry for Emergency Situations continues.

Involving Poltava regional state administration, “AvtoKrAZ” Holding Company has developed and proposed favorable vehicles purchasing scheme to state-financed organizations of regions and towns. Within the frames of this program “AvtoKrAZ” holds open days for heads of state-financed organizations, these days are scheduled for November 26 and December 3. This event provides demonstration of vehicles production, line-up and advanced development vehicles, as well as demonstration of the KrAZ automotive vehicles capabilities on the only demonstration-testing ground in Ukraine.