News October 2008

Due to recession in the automotive market of Ukraine, Zaporozhye Automobile Building Plant plans in the nearest future to increase export of its production volumes. Due to financial crisis and sales recession in Ukrainian market, "UkrAVTO" Corporation, to which structure ZAZ is included, intends to pay serious attention to development of business in other countries. Corporation reviews the versions of expanding the deliveries of vehicles and KD-sets to several countries, including those, where it has its subsidiaries. Thus, it has already started to deliver the sets to Egypt for CKD production. "In this situation, aggravated by entry of Ukraine to WTO and by reduction of SKD production volumes, we have to be reoriented to the markets, which are not subjected to serious recession, and to refine our basic automobile production", - states Oleg Papashev, Vice-President of "UkrAVTO" Corporation. "Unlike the other automotive companies in Ukraine, ZAZ has its localized product, that will enable us to react quite plastically upon change of market conditions." "UkrAVTO" Corporation plans to work actively on foreign markets both on the account of increasing the number of countries for supposed export and on the account of expanding the range of products manufactured, that will enable to minimize the influence of Ukrainian crisis on Company activities. Besides the existing markets of Russia, Armenia, Belarus, Georgia, Syria, the plans include the delivery of vehicles to Iran, Sudan, Kazakhstan, Uzbekistan, Azerbaijan and some other countries. Since January, 2009 the 5-doors HB cars will be added to Lanos and Sens models, delivered for export. Besides, Lanos options will be additionally equipped with 1.4l engine, air conditioner, power steering system.