GAZ will remain without foreign components, but this will help to develop

GAZ Group is once again suffering from economic sanctions. Now the manufacturer will be left without foreign components supplied to him by Western firms. Since May 25, the restrictions that have been postponed by the US Treasury for the past 4 years have come into force.


The main problem is the cessation of contract assembly of Volkswagen and Skoda passenger cars in Nizhny Novgorod. The plant will lose a significant part of its income.

According to the press service of the GAZ Group, the US government insisted on terminating the contracts of Western partners with all subsidiaries belonging to the Russian concern.



What does this mean for the manufacturer? There will be no more passenger cars, at least until other, more reliable partners are found. This role is likely to be claimed by Chinese manufacturers.

The main problem is the cessation of deliveries of Cummins turbodiesel engines, which have been installed in GAZelle/Valdai Next for about 10 years. Although this motor is made in China, the factory belongs to a corporation from the United States.

The electronics on GAZ light trucks are partly from Bosch - they will not be there either. Automatic transmissions on domestic cars were used from ZF and Allison.

GAZ Group is no stranger to working under sanctions. The manufacturer periodically tries to adapt to new circumstances, which is why the number of domestic components in cars is constantly growing. For example, the Nizhny Novgorod Foundry recently began serial production of engine blocks, flywheels, crankcases and brake discs.

GAZ Group plans to further master the production of its diesel engines for light trucks. Motors will have to replace Chinese-American Cummins.

The concern sees the main goal of caring for employees. In total, about 500 people work at the enterprises of the GAZ Group.



The localization process, according to the manufacturer, was too slow until 2022. Until the sanctions affected the whole of Russia, other domestic companies were not going to start doing something of their own. Now the conditions are forcing us to look for ways of import substitution.

The pandemic and the shortage of automotive electronics could not stop the development of GAZ Group projects. It will not be possible to do this even now - in the context of global economic sanctions against the Russian Federation.

Time has shown that masters of their craft work at GAZ plants, who cannot be broken by difficulties.