Will “deadly” US sanctions stop the GAZ conveyor belt?
- May 13, 2022
- 0
The Gorky Automobile Plant has been threatened with sanctions for the past four years. GAZ was included in the sanctions list drawn up by the US Treasury Department
The Gorky Automobile Plant has been threatened with sanctions for the past four years. GAZ was included in the sanctions list drawn up by the US Treasury Department in the spring of 2018: from then on, banks, suppliers and other counterparties of Russian companies were faced with “secondary sanctions”. That is, it was believed that many partners, fearing possible negative consequences, would themselves part with their partner from Russia. But the aggressive rhetoric from overseas officials soon gave way to strange concessions: Local authorities regularly issue short-term licenses that allow cooperation on previously concluded contracts.
Such permits for the work of the GAZ group with its suppliers and counterparties have been granted innumerable. In addition, on April 27 (at the height of anti-Russian sentiment), the US department suddenly decided to postpone sanctions against Oleg Deripaska’s company for almost a month! May 25 is now the final decision point.
What happens after this date? The list of questions and answers that came from across the ocean does not directly say that this is the last postponement of sanctions for GAZ. However, it is repeatedly emphasized that after the expiry date, US residents can only transact with a Russian company with special permits.
Whether such permits are granted at all is the most important question. If no such document is signed, the car factory will be left without imported components (this is the main “horror story” that the drafters of the sanctions list fear). That is why the AvtoVzglyad portal decided to investigate how important it is for Gazelles and Lawns to be without components from abroad.
In fact, GAZ Group is one of the few domestic companies that has always “drowned” to a high level of localization and total import substitution. We won’t talk about frames, cabs and bodies of our own production, but we’ll dig deeper. Engines, gearboxes and transmission units are also made by the group companies themselves!
For example, the Ulyanovsk Motor Plant produces gasoline and bi-fuel engines. Yaroslavl’s latest development is a three-litre aspirated engine, which has a cast iron cylinder block instead of an alloy one, different crankshafts and camshafts, plus different block heads and pistons.
Gearboxes, including a six-speed “mechanics” for the Gazelle family, are manufactured by Nizhny Novgorod Motors. Here they also assemble the domestic “automatic machine”, which was the first to try on buses. By the way, as representatives of the GAZ Group told the AvtoVzglyad portal, two-stage cars are already available for order.
Obviously, imported components (the same bearings or synchronizers) can be hidden in units and assemblies of Russian origin. But knowing that one day the US Treasury Department would not renew a new license, Nizhny Novgorod was actively looking for a replacement for such details. And, as you might guess, they found it!
So, now residents of Nizhny Novgorod have nothing to fear: the main components have been “imported”, and what remains abroad will soon be replaced by unsanctioned analogues. By the way, this is not an easy process for the automotive industry: for example, to rearrange a conditional control unit, it is necessary to prepare documentation, conduct tests, and then purchase other wiring and fasteners.
In any case, it will take time to replace the rest of the import. And during this period, production problems may arise … In the meantime, GAZ remains one of two Russian car factories (the second is KamAZ) that has never stopped the conveyor. Since Sollers Ford is now out of business and dealers are selling Transits for 5 million rubles for an “empty” truck, this is a great opportunity for Sobol and Gazelle to capture an even larger share of the LCV market.
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photo of the manufacturer.
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photo of the manufacturer.
Such permits for the work of the GAZ group with its suppliers and counterparties have been granted innumerable. In addition, on April 27 (at the height of anti-Russian sentiment), the US department suddenly decided to postpone sanctions against Oleg Deripaska’s company for almost a month! May 25 is now the final decision point.
What happens after this date? The list of questions and answers that came from across the ocean does not directly say that this is the last postponement of sanctions for GAZ. However, it is repeatedly emphasized that after the expiry date, US residents can only transact with a Russian company with special permits.
Whether such permits are granted at all is the most important question. If no such document is signed, the car factory will be left without imported components (this is the main “horror story” that the drafters of the sanctions list fear). That is why the AvtoVzglyad portal decided to investigate how important it is for Gazelles and Lawns to be without components from abroad.
In fact, GAZ Group is one of the few domestic companies that has always “drowned” to a high level of localization and total import substitution. We won’t talk about frames, cabs and bodies of our own production, but we’ll dig deeper. Engines, gearboxes and transmission units are also made by the group companies themselves!
For example, the Ulyanovsk Motor Plant produces gasoline and bi-fuel engines. Yaroslavl’s latest development is a three-litre aspirated engine, which has a cast iron cylinder block instead of an alloy one, different crankshafts and camshafts, plus different block heads and pistons.
Gearboxes, including a six-speed “mechanics” for the Gazelle family, are manufactured by Nizhny Novgorod Motors. Here they also assemble the domestic “automatic machine”, which was the first to try on buses. By the way, as representatives of the GAZ Group told the AvtoVzglyad portal, two-stage cars are already available for order.
Obviously, imported components (the same bearings or synchronizers) can be hidden in units and assemblies of Russian origin. But knowing that one day the US Treasury Department would not renew a new license, Nizhny Novgorod was actively looking for a replacement for such details. And, as you might guess, they found it!
So, now residents of Nizhny Novgorod have nothing to fear: the main components have been “imported”, and what remains abroad will soon be replaced by unsanctioned analogues. By the way, this is not an easy process for the automotive industry: for example, to rearrange a conditional control unit, it is necessary to prepare documentation, conduct tests, and then purchase other wiring and fasteners.
In any case, it will take time to replace the rest of the import. And during this period, production problems may arise … In the meantime, GAZ remains one of two Russian car factories (the second is KamAZ) that has never stopped the conveyor. Since Sollers Ford is now out of business and dealers are selling Transits for 5 million rubles for an “empty” truck, this is a great opportunity for Sobol and Gazelle to capture an even larger share of the LCV market.
SUBSCRIBE FOR EXCLUSIVE CONTENT
PORTAL “AVTOVGLYAD” IN TELEGRAM
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
