Sollers Sollers

The company owns production sites that produce Russian UAZ SUVs, Korean ones - SsangYong, FIAT cars and commercial vehicles, Japanese ISUZU trucks, as well as ZMZ gasoline and diesel engines. In addition, Sollers is developing a network of dealerships and has its own leasing division.

Performance indicators

2023: Vehicle sales rise 16.6% to 46,774

Sollers increased car sales in 2023 by 16.6% compared to 2022 - to 46,774 units. This is evidenced by the data of the Association of European Businesses (AEB), which were released on January 11, 2024.

Under the Sollers brand, 8,541 cars were sold in 2023 against only 14 a year earlier. Car UAZ sales climbed 10.3% to 37,412. It also reported a decrease in the supply of cars Ford Transit from the old model range - from 6186 in 2022 to 821 years later.

Sollers increased car sales for 2023 by 16.6%

According to Anastasia Egazaryan, senior analyst at Alfa Bank, these results are "neutral" for Sollers, although the volume of sales of its own brands turned out to be slightly less than expected in the company's management (9,000 at the end of 2023). The company needs good dynamics of sales of its own brands in order to achieve a positive turning point in business development and a successful change of strategy after the departure of international partners in joint projects, Yegazaryan believes.

Sollers is a Russian automobile group, the main asset is the Ulyanovsk Automobile Plant with its traditional product line (Hunter, Profi, Patriot and loaf). The group also had several joint ventures with foreign concerns (Ford, Mazda and Isuzu), but soon after the start of the special military operation of the Russian Federation in Ukraine, they left the Russian market.

In 2023, Sollers switched to the production of the full cycle of Sollers Atlant cars at the facilities of the Sollers Alabuga plant. In addition, the group launched a project to produce a family of diesel engines at the Alabuga SEZ engine plant and launched a project to organize the production of a full cycle of Sollers Argo compact cars in Ulyanovsk. The Ulyanovsk Automobile Plant launched the production of the flagship UAZ Patriot model with an upgraded rear suspension.^[1]

History

2024

Launch of transmission production for 0.5 billion rubles

On July 4, 2024, the Sollers automobile group launched the production of mechanical gearboxes (MKPP). The new production line was put into operation on the basis of the industrial park of the Zavolzhsky Motor Plant in the Nizhny Novgorod Region.

According to Interfax, the release of six-stage MKPPs became possible thanks to a preferential loan of 564 million rubles, approved by the Industrial Development Fund (FRP). The funds raised were used to purchase equipment for the assembly workshop, the mechanical processing line for body parts, as well as serial casting equipment.

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Sollers

The gearboxes will be installed on low-tonnage Sollers Argo trucks with a 130 hp two-liter diesel engine, also produced at the Sollers engine plant in Yelabuga. In addition, it is planned to equip new MKPP and other Sollers models, including light commercial vehicles and pickups, as well as cars of the UAZ brand.

The new enterprise will assemble and test the IFRS, as well as localize the technological operations for casting and machining crankcases. In the future, the localization of all main parts of the IFRS is considered. Sollers reported that a pilot batch of transmissions was released at the Volga site in February 2024, and mass production is scheduled for the second quarter of 2024.

The production line in the Volga region has a capacity of up to 50 thousand transmissions per year and can be quickly reconfigured to various modifications. The assembly line control software has been developed by Russian specialists.

For the first half of 2024, sales of the Sollers group in Russia increased by 41.2%, reaching 22,236 cars. In particular, UAZ models were sold in the amount of 16,572 units (+ 23.3%), and Sollers cars, including light commercial models Atlant and Argo, as well as the Sollers ST6 pickup truck produced in the Far East, were sold 5691 units, which demonstrates an increase of almost 2.5 times^[2]

Sale of stake in Aurus

Sollers left the co-owners of Aurus, selling its 0.5 percent stake in the Russian luxury car manufacturer Heath Motors Rus. Read more here.

Receiving 1.2 billion rubles for the launch of the first production of airbags in Russia

Sollers received 1.2 billion rubles to launch the first production of airbags in Russia. The company told about this on February 20, 2024. Read more here.

2023

Purchase of Russian business Isuzu

On July 14, 2023, Sollers announced the purchase of the Russian business of the Japanese automaker Isuzu Motors. The sale of Isuzu Rus JSC is closed. The financial component of the agreement has not been disclosed. Read more here.

Launch of diesel engine production for 2.2 billion rubles in Tatarstan

On July 10, 2023, the production of diesel engines started at the Sollers plant in the Alabuga SEZ (Tatarstan) started. Russian Prime Minister Mikhail Mishustin attended the opening of workshops via video link.

Today we are launching the production of a new family of engines at an advanced high-tech enterprise and can confidently declare that this is only the initial stage on the way to the first deeply localized production of small diesel engines in Russia both for SOLLERS cars and the needs of the Russian automotive industry as a whole, and for other industries. All key technological operations will be localized at the enterprise: from casting, forging and machining of the basic parts of the engine to its assembly and control tests, - said Adil Shirinov, Chairman of the Board of Directors of Sollers PJSC.

At the Sollers plant in Tatarstan launched the production of diesel engines for 2.2 billion rubles

This facility will produce diesel internal combustion engines of 2 and 2.7 liters (130 and 150 hp), which meet Euro-6 standards. The motors were created according to the project of the Chinese automaker JAC. Sollers completely localized key production chains, including casting, forging, machining of engine base parts, assembly and control tests.

As the Sollers press service added, the engine plant was created in 2015, and by July 2023 it was completely reoriented to the production of modern diesel engines with a volume of 2 and 2.7 liters, complying with the Euro-6 environmental standard. The maximum capacity of the plant is 50,000 engines per year. Sollers added that the total investment in the project amounted to 2.2 billion rubles, including borrowed funds from the Industrial Development Fund in the amount of 1.7 billion rubles.^[3]

Investment of 3 billion rubles in the production of commercial cars at the UAZ site

Sollers will invest 3 billion rubles in the production of commercial cars at the UAZ site. The corresponding agreement, as reported by the Sollers press service on July 10, 2023, was signed with the government of the Ulyanovsk region.

Within the framework of this agreement, Sollers undertakes obligations to create a full-cycle production of the Sollers Argo passenger commercial car, as well as new models of commercial vehicles under the Sollers brand in the region in the period 2023-2025. The document also envisages the creation in the Ulyanovsk region of new capacities for the production of high-tech auto components. During the implementation of the project, it is planned to create at least 500 new jobs.

Director of PJSC SOLLERS Nikolai Sobolev and Governor of the Ulyanovsk Region Alexei Russkikh

The Russian automotive group announced the creation of a multi-brand industrial center at UAZ in May 2023. In the industrial park of UAZ "Sollers" creates new capacities for the production of commercial vehicles with a frame structure.

The assembly of commercial cars started in a new building at the industrial site of UAZ as part of a separate legal entity - Sollers Cargo LLC. On the territory of the industrial park of UAZ, construction and installation work is being completed to launch the production of a full cycle, including welding, painting the cabin and assembling Sollers Argo. The assembly of this model will be transferred to the UAZ site from Tatarstan Elabuga, where it will be discontinued.

Earlier it was also reported that the planned capacity for the production of this model is designed to produce over 10 thousand cars per year in the five-year term. Total investments in the project were estimated at more than 1 billion rubles.

Sollers Argo is a compact car for urban transportation, created on the basis of the technologies of the Chinese automaker JAC.^[4]

Changing the name of the former Sollers and Ford JV

In March 2023, the legal entity of the former joint venture of the Sollers automotive group and the American automaker Ford in the Russian Federation (Sollers Ford LLC) was renamed Sollers Service Management LLC and will continue warranty service of Ford Transit light trucks.

2022

Mazda leaves the joint venture and transfers its share to Sollers Auto

In November 2022, the Japanese corporation Mazda Motor, against the background of the ongoing conflict in Ukraine, decided to cease its activities in Russia and transfer a stake in a joint venture in Vladivostok to PJSC Sollers Auto.

Sollers has confirmed that it will buy out Mazda's stake in a joint venture in Vladivostok, the start of production of new car models on the site is scheduled for 2023.

In December 2022, it became known that Sollers closed the deal to buy out Mazda's stake in the parity joint venture.

Ford's exit from the joint venture and the sale of its 49% stake

At the end of October 2022, Ford announced its withdrawal from a joint venture with Sollers by selling its 49 percent stake to a Russian group. Thus, the American automaker finally left the Russian market. Read more here.

Chinese carmaker Chery refused to localize Ulyanovsk Automobile Plant

In August 2022, the Chinese carmaker Chery, which was negotiating a partnership with the Sollers Auto group, decided to abandon localization plans for "" due to sanctions risks. Ulyanovsk Automobile Plant Chery may consider the option of localization at another Sollers Auto site - the Russian company, in addition to UAZ, has joint ventures with in Ford Yelabuga Mazda and with in, Vladivostok which are still frozen.

Top managers of Sollers bought 77.6% of the company's shares for 4 billion rubles

Top managers of the Sollers automaker bought 77.6% of the company's shares from the former main owner Vadim Shvetsov for 4 billion rubles. This was reported at the end of March 2023 by the Interfax agency with reference to the reports of Alter Invest, which is the controlling shareholder of Sollers.

The purchase and sale agreement in relation to the company's shares was drawn up on June 20, 2022. As part of the transaction, an option is provided that allows the previous owner to buy back up to 50% of Sollers shares after a year. Alter Invest's shareholders are top managers of the Sollers automaker Adil Shirinov, Nikolai Sobolev, Zoya Kaika and Viktor Khvesenya (by March 2023).

Top managers of the automaker Sollers bought 77.6% of the company's shares from the former main owner

Shares of PJSC Sollers on July 6, 2022 were pledged to the seller's benefit "until the buyer fully fulfills all obligations under the agreement." As noted in the reporting of Alter Invest, at the end of 2022, financial investments were overvalued taking into account the current market value - from 4 billion rubles to 5.35 billion rubles.

In June 2022, Zoya Kaika said that the deal was planned even before the EU imposed sanctions against UAZ.

It just so coincided that the deal took place almost immediately after falling into the European sixth package of sanctions. But we began to discuss it with Vadim Arkadyevich some time before. Not last year [2021], this year [2022]. But this has nothing to do with the sanctions, "Kaika told reporters. - He sincerely told us that he doesn't feel a drive, let's say, from scratch again to start making strategy ‹ Sollers › in new conditions.

She added that the partner model, which Sollers "believed in for many years and which they tried to implement, is indeed impossible in the current realities."^[5]

Vadim Shvetsov sold Sollers Auto to top managers of the carmaker

At the end of June 2022, it became known about the sale by the chairman of the board of directors of PJSC Sollers Auto Vadim Shvetsov of 76.7% of the shares of the auto concern. The buyer of the asset was Alter Invest, which, according to the SPARK-Interfax system, belongs to the top managers of Sollers and its divisions. The value of the transaction was not disclosed.

According to Kommersant, the deal was closed on June 24, 2022, it was monetary, based on the market valuation of assets. The capitalization of Sollers Auto at the Moscow Exchange as of the closing date of the transaction amounted to 5.8 billion rubles, that is, Shvetsov's package cost 4.5 billion rubles.

Vadim Shvetsov

According to the source of the publication, Vadim Shvetsov gradually reduced involvement in the management of Sollers Auto after leaving the post of general director in 2019, which he has held since the founding of the concern.

He did not take part in industry meetings, concentrating on other divisions of Sollers Group, including logistics, and new projects - as car-sharing electric vehicles with, RusHydro"" the newspaper's interlocutor explained.

According to Kommersant, the new owners of Sollers Auto will develop their existing assets, but will consider other options for interaction, including with Chinese car concerns. Work on mobility services will continue.

Sollers Auto will continue its activities in the previous structure of the company's assets and intends to ensure the further development of the strategy for the production and distribution of cars, auto components and the launch of new mobility services on the market, RBC said in Sollers, the company said in a statement.

By June 2022, 39.5% of Alter Invest belongs to the head of UAZ and Sollers Ford Adil Shirinov, 35.5% to the general director of Sollers Auto and Sollers Group Nikolai Sobolev, 20% to the deputy general director of Sollers Auto Zoya Kaika, 5% to the deputy general director for legal issues Sollers Auto Viktor Khvesen. Alter Invest was headed by Sobolev.^[6]

2021: Sollers set up a transport video analytics solution provider

As TAdviser found out, at the end of September 2021, a new subsidiary, Tractis, appeared in the Sollers group. 99% of this company is owned by Sollers Group LLC, the founder of which is Vadim Shvetsov, chairman of the board of directors of Sollers Auto. And the share in 1% of the authorized capital of "Tractis" belongs to him directly. Read more here.

2020

Sollers Ford expands localization of Ford Transit production

In November 2020, it became known that radiators for Ford Transit cars will be produced in Russia. The partner is the Nizhny Novgorod company TRM, which has the status of a supplier of Q1 of the Ford concern.

Sale to Sovcombank of a 50% stake in Sollers-Finance leasing company for 1.2 billion rubles

For half of the Sollers-Finance leasing company, Sovcombank paid 1.2 billion rubles. As a result of the transaction, the bank consolidated 100% of the shares of the leasing company.

The company's valuation turned out to be the lowest, based on well-known transactions in the leasing market. The discount could be provided by the relatively small size of the company itself, as well as the concentration of its funding on the bank itself. The transition of Sollers-Finance to the bank reflects the emerging tendency for credit institutions to enter more marginal areas, as well as the increased sensitivity of leasing companies to the cost of funding, the cheapening of which can be achieved at the expense of the reference bank.

The bank bought a 50% stake from the Sollers automaker Vadim Shvetsov. The acquisition price of Sollers-Finance corresponds to 4.2 net profit (Net Income, NI) of the leasing company for the year, based on IFRS for mid-2019. Read more here.

2010: Opening of a plant in Vladivostok

In February 2010, Sollers opened a plant in Vladivostok.

Information Technology at Sollers

Main article: Information Technology at Sollers

Notes