General Motors Avtovaz NIVA…
From VAZ 2121 NIVA The Joint Venture that works………… TO CHEVY General Motors AvtoVaz NIVA… Copyright, J. Goldberg, A. Goncalves, A. 1 Copyright, J. Goldberg, A. Goncalves, A. 2 Kormova, K. McMillan, M. Rubin Kormova, K. McMillan, M. Rubin GM-AvtoVaz AvtoVaz: 1998 – 2002 Figures Introduction ► AvtoVaz has 1.34% of World production AVTOVAZ founded in 1971 First NIVA (Vaz 2121) was produced in 1977 ► Growth is picking up Before Joint Venture: 1998 2002 Change Russian auto industry undeveloped - no direct competition due to few producers vehicle unit sales 591,000 768,030 29% - cash only business Forces pushing towards joint venture net sales 62,982,000 119,432,000 89% - Western Automakers - Russian Automakers Operating income (loss) -11,661,000 5,952,000 151% Copyright, J. Goldberg, A. Goncalves, A. 3 Copyright, J. Goldberg, A. Goncalves, A. 4 Kormova, K. McMillan, M. Rubin Kormova, K. McMillan, M. Rubin Source: AvtoVAZ Annual Report 2002 & 1998 GM Automobile Production Worldwide Year 2002 (in thousands) # 1 Automobile Manufacturer Worldwide GM as % of Region Industry GM Industry Markets: GMNA 20,118 5,623 28.0% 1. North America - GMNA 2. Europe – GME GME 19,172 1,662 8.7% 3. Asia Pacific- GMAP 4. Latin America, Africa and Middle East - GMLAAM 3,673 635 17.3% GMLAAM GMAP 14,373 605 4.2% Total Worldwide 57,336 8,525 14.9% Copyright, J. Goldberg, A. Goncalves, A. 5 Copyright, J. Goldberg, A. Goncalves, A. 6 Kormova, K. McMillan, M. Rubin Kormova, K. McMillan, M. Rubin Source: GM Annual Report 2002 1 Primary Goals of Joint Venture History of GM-Avtovaz Introduction of higher quality Agreed on 30 July 2001 Lower Costs $99.1M in cash & equipment (41.5%) (GM) Efficient systems AvtoVaz $99.1M in intellectual property, rights Strengthen trust of western companies to for Niva car, special buildings and facilities Russian business (41.5%) Further attraction of investments in European bank of reconstruction & automotive industry in Russia development put down $40 M in cash Total sum of investment = $338 M Copyright, J.
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