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The head of Ulyanovsk Automobile Plant announced termination of all projects
The head of Ulyanovsk Automobile Plant announced termination of all projects
Adil Shirinov, the head of the UAZ automobile plant, told the press about plans to close all the projects for the development of new autocars. According to the head of the enterprise, there is neither money nor technological capabilities to modernize the popular ‘Loaf’ car. Considering that the SUV produced by UAZ is already in its seventh decade, it would be more expedient to let the project live out its life, and then close the plants after the production of cars is curtailed.
Speaking at an online conference, the head of the plant expressed the idea that the UAZ still had its own market niche, which dealt with production of items that were in demand.
The development of new projects associated with large financial investments and due diligence can make an enterprise unprofitable and bankrupt. And although the search for solutions to this problem, according to Shirinov, can be continued, the creation of new products seems to be quixotic.
Earlier, the media reported on a project to create a new type of SUVs, the so-called Russian Prado, based on the UAZ Patriot model. Insider information about plans to create new engines at ZMP (Zavolzhsky Motor Plant) was announced. According to the CEO, all such projects have been stopped, since no modern automotive company in the world can develop new car models on its own.
According to statistics, UAZ remains a profitable production. Moreover, the number of cars sold last month (3728 units) exceeded the last year's figures by 2%. In general, the share of the company's products in the Russian market has consistently ranged from 2% (in 2021) to 2.1% (in 2020).
According to the experts, about a third of all products manufactured by UAZ are government orders. The company actively continues its policy of cars export, which has recently grown by 10%. And although the company is trying to conclude a profitable agreement with other automakers, it has not yet been possible to create a real alliance.
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