Localization of Components' Production:
Results and Outlooks

The results of activities in the field of localization of localization of components, made by the specialists of Zaporozhye Automobile Building Plant and outside related enterprises, have been summarized.
As a results of works executed in the field of localization in 2010, 176 products have been mastered and excluded from the supplied items in the composition of KD-kit, including 103 products, mastered at CJSC "ZAZ", 20 products, mastered by suppliers from Ukraine and CIS countries. Besides, the foreign suppliers were changed for 14 products.

Localization makes a considerable impact on reduction of production cost of vehicles and raising the competitive capacity for company products.
The efficiency of localization, made during 2010 is seen on the example of basic model of Lanos vehicle SX TF69YO-86. The real cost reduction, including the transportation expenses, equaled to 202,08 USD.
The works in the field of reduction of manufacturing cost for finished Lanos car of all modifications were continued in 2010. CJSC "ZAZ" mastered the production of components, which formerly have been imported.
Some components were mastered on the equipment of production subdivisions of CJSC "ZAZ": RR buffer energy dissipator, bracket plates, trunk compartment carpet.
The important role in reduction of expenses for components' purchasing is played by mastering some products by Ukrainian and CIS suppliers: production of ECM - at "Mica Motor", Russia, catalytic converter assembly - at "Bosal-ZAZ", Ukraine.
Localization works are not over yet. The task is set for all concerned CJSC " ZAZ" subdivisions: to reduce to the maximum the portion of components and materials in production of vehicle from foreign suppliers and to provide engagement of production facilities of Zaporozhye Automobile Building Plant.
The works on localization of components of foreign production will be continued in 2011. It is planned to localize about 200 products, including over 90 ones - to be mastered at CJSC "ZAZ".