7.10.2004

IzhAvto Setting Up Regional Supplies Departments

A regular dealers’ conference took place at IzhAvto OJSC late in September. It focused on discussion of the decision to set up regional supplies departments, which was taken on September 22, 2004.

Setting up of the departments is largely aimed at launching regional finished goods warehouses, which would enable to shorten a distance between a manufacturing plant and the end users. The departments would also enable to routinely coordinate product flows among regions. With these departments, corporate dealers will be able to promptly receive products manufactured at the Izhevsk motor works. In addition, departments will monitor regional markets, with survey results arriving to IzhAvto.

Regional supplies departments have already started to be established. The first dealers on territories of which regional warehouses of IzhAvto cars are planned to be arranged have already been assigned. These include IzhTechObsluzhivaniye (Izhevsk), Avtomarket (Moscow) and SOK Lada (Samara). In the future, the dealer network will expand to cover the entire Russian Federation– from Trans-Baikalia to Karelija.

IzhAvto requires that its corporate dealers comply with the packet agreement, including availability of the necessary infrastructure and conditions for its development, competent staff and compliance with trademark style requirements. Enterprises of IzhAvto service and sales network will start trademark style introduction into design of motor salons and maintenance centers as well as show rooms by the end of 2004.